Capital Markets Day 2008
Olli-Pekka Kallasvuo
President and CEO
1) Nokia’s competitive advantages
2) Business review for 2008
3) Focus areas for 2009
Agenda
© 2008 Nokia Capital Markets ...
3
Nokia competitive advantages – more relevant in
this environment
Source: Interbrand
1
2
3
4
7
8
9
10
6
5
Scale: 39% mark...
2008 Events
Nokia Siemens Networks
Services & Software
Smartphones
Device Portfolio
STATUSSUBJECT
NAME
DATE 2008
Nokia 200...
The device business: profits
Mobile device operating
profit share (Q1-Q3 2008)
39% 61%
Source: Nokia estimates and company...
Source: IDC – Estimates for 2008
Sept. 2008
(USD-Euro exchange rate=0.773)
Portable Music &
Media Players
Still & Video
Di...
Room for growth
100%
India
Bangladesh
Sub-Saharan Africa
China
Egypt
Pakistan
Indonesia
Iran
806040200%
Source: Nokia esti...
The only global portfolio
Essential StyleBusiness Media / Internet
Rational Aspirational
Price
segments
(EUR)
Live
Premium...
2008 Events
Nokia Siemens Networks
Services & Software
Smartphones
Device Portfolio
STATUSSUBJECT
NAME
DATE 2008
Nokia 200...
Smartphones for the fourth quarter
Nokia N96
Nokia E71
Nokia
5800 XpressMusic Nokia N85
Nokia E63
WIP
© 2008 Nokia Capital...
2008 Events
Nokia Siemens Networks
Services & Software
Smartphones
Device Portfolio
STATUSSUBJECT
NAME
DATE 2008
Nokia 200...
12
Nokia Maps
2.0
Services & Software launches
Share on Ovi
Files on Ovi
Ovi.com sync
Nokia Ovi
Suite
N-Gage
Jan/08 Feb/08...
2008 Events
Nokia Siemens Networks
Services & Software
Smartphones
Device Portfolio
STATUSSUBJECT
NAME
DATE 2008
Nokia 200...
Nokia Siemens
Networks
© 2008 Nokia Capital Markets Day 200814
2008 Events
Nokia Siemens Networks
Services & Software
Smartphones
Device Portfolio
STATUSSUBJECT
NAME
DATE 2008
Nokia 200...
Important 2008 milestones
© 2008 Nokia Capital Markets Day 200816
Important 2008 milestones
© 2008 Nokia Capital Markets Day 200817
© 2008 Nokia Capital Markets Day 200818
2008 Events
Nokia Siemens Networks
Services & Software
Smartphones
Device Portfoli...
Cost base sized correctly
Growth opportunities
Services & Software
Email
UI and Software Platforms
2009 Focus Areas
© 2008...
Cost base sized correctly
• Prioritization leads to specific cost
reductions in all areas
• We will execute our strategy, ...
Growth opportunities
• Services & Software
• Take market share
• Capture value from
adjacent industries
• Nokia device
enh...
Simple and intuitive
Mail on Ovi for Nokia
Series 40 Devices
Nokia Life Tools
2009
Focus areas
© 2008 Nokia Capital Market...
Simple and intuitive
Mail on Ovi for Nokia
Series 40 Devices
Nokia Life Tools
2009
Focus areas
© 2008 Nokia Capital Market...
Simple and intuitive
Mail on Ovi for Nokia
Series 40 Devices
Nokia Life Tools
2009
Focus areas
© 2008 Nokia Capital Market...
2009
Focus areas
© 2008 Nokia Capital Markets Day 200826
2009
Focus areas
© 2008 Nokia Capital Markets Day 200827
Mobile Messaging for the Masses
Device Breadth, Global Reach
2009
Focus areas
© 2008 Nokia Capital Markets Day 200828
Software and UI
2009
Focus areas
© 2008 Nokia Capital Markets Day 200829
Shaping the future
© 2008 Nokia Capital Markets Day 200830
© 2008 Nokia31
Extending the lead in devices
Kai Öistämö
Executive Vice President, Devices
 Mobile Phone becomes Mobile Computer
 Focus on solution not product
 New organization has reduced overlaps
 Focus bac...
Hold home field advantage
 Defend in markets where
we are strong
 Value for money
 Highest perceived value
 Nokia bran...
Exploit
growth
opportunities
 Starts with the consumer
 Strategic collaboration with US
carriers
 Shipments to Korea sc...
Grow in
emerging markets
through value add
© 2008 Nokia Capital Markets Day 200836
Key drivers
for 2009
 User Experience
 Innovation
 Scale and Cost Efficiency
© 2008 Nokia Capital Markets Day 200837
Gain user experience leadership
 Across platforms,
geographies, price points
 One size does NOT fit all
 User experienc...
Nokia Entry and Life Tools
© 2008 Nokia Capital Markets Day 200839
Nokia Nseries
 Over 80% of N95 owners access
the web
 Estimate over 100 million
Nseries sold by Q1 2009
© 2008 Nokia Cap...
 Touch and physical QWERTY
 Customizable Homescreen – your favorite contacts & services at a glance
 32 GB of on-board ...
© 2008 Nokia Capital Markets Day 200842
© 2008 Nokia Capital Markets Day 200843
Drive innovation through
platforms
 Innovation in hardware
and software
 Symbian Foundation,
Trolltech in software
 UI ...
<
Navigation has reached the mass market
50% of 2009 portfolio with built in GPS
All S60 with Maps, first Series 40 with G...
Maximize scale and
cost efficiency
© 2008 Nokia Capital Markets Day 200846
%
Gross margin%
Nokia 6300
3.07
4.07
5.07
7.07
8.07
9.07
10.07
11.07
12.07
1.08
2.08
3.08
4.08
5.08
6.08
6.07
2.07
1.07
Re...
Best Smart Phone for
Professionals
(PC World Latin America
2008 Awards)
Phone of the year
(Mobile Choice UK)
Smartphone of...
© 2008 Nokia51
Lead in user experience
the world over
Focused on innovation
Scale and structure
brings cost efficiency
© 2...
Company Confidential
Services & Software
Niklas Savander
EVP, Services & Software
2008
© 2008 Nokia Capital Markets Day 200854
Nokia Music Comes With Music
Nokia Maps 2.0 Nokia Maps 3.0
Share on Ovi
N-GageNokia Messaging
Maps on Ovi
© 2008 Nokia Cap...
€40 billion in 2011
© 2008 Nokia Capital Markets Day 200856
Sega.co
m
© 2008 Nokia Capital Markets Day 200857
© 2008 Nokia Capital Markets Day 200858
12 markets - 3 continents
35% of visitors from Mobile Devices
Comes With Music, now live in the UK
Four major labels and i...
Coverage in >200 countries
70 turn-by-turn navigable countries
Navigation license in 70% of GPS enabled devices in 3Q08
© ...
Sales in over 130 countries
More than 1/3 come back for more
23 games published on N-Gage
Device N-Gage bundles ramping up...
© 2008 Nokia Capital Markets Day 200862
© 2008 Nokia Capital Markets Day 200863
© 2008 Nokia Capital Markets Day 200866
© 2008 Nokia Capital Markets Day 200867
© 2008 Nokia Capital Markets Day 200868
© 2008 Nokia Capital Markets Day 200869
© 2008 Nokia Capital Markets Day 200870
© 2008 Nokia Capital Markets Day 200871
© 2008 Nokia Capital Markets Day 200872
© 2008 Nokia Capital Markets Day 200873
© 2008 Nokia Capital Markets Day 200874
Nokia Music Store for US, South Africa and Brazil
Comes With Music
100% of chart coverage at sales start
13 additional mar...
Several operator cooperation projects launched or in the pipeline
Expand usage of device bundles
N-Gage in Chinese languag...
2008
Nokia Music
Comes With Music
Nokia Maps 2.0
Nokia Maps 3.0
Maps on Ovi
N-Gage
Nokia Messaging
Share on Ovi
Sega.com
©...
80
Markets Unit
Building the brand and bringing
Nokia solutions to market
Anssi Vanjoki
EVP, Markets, Nokia
Outline
Global view
Brand
Consumer
Operator cooperation
Marketing efficiency
Go-To-Market
Summary
© 2008 Nokia Capital Mar...
Nokia is best positioned to grow in a diverse
and global market
9% 10%
8%
North America
pop. 338 million
Latin America
pop...
Outline
Global view
Brand
Consumer
Operator cooperation
Marketing efficiency
Go-To-Market
Summary
© 2008 Nokia Capital Mar...
Top 10 Brands
More than 1 billion people use a
Nokia device every day
Connecting People
in new and better ways
Nokia - The...
Mercedes-Benz
McDonald's
BMW
Motorola
Google
Microsoft
Samsung
Sony
Coca-Cola
Nokia
%
20%
40%
60%
0% 20% 40% 60%
Your Most...
Nokia has the highest brand preference
0% 50% 100%
NAM
Brazil
LTA
China
India
SEAP
SSA
MENA
Eurasia
W.Europe
C.Europe
Glob...
Outline
Global view
Brand
Consumer
Operator cooperation
Marketing efficiency
Go-To-Market
Summary
© 2008 Nokia Capital Mar...
Consumers drive our thinking
Nokia segmentation model
© 2008 Nokia Capital Markets Day 2008
Consumers drive our thinking
Nokia segmentation model
People are more engaged to the
category
People are willing to spend ...
Consumers drive our thinking
Technology Leaders
Modern, leading edge consumers
Technology is their life
Very positive towa...
Consumers drive our thinking
Segmented offering
Pragmatic
Leaders
Young
Explorers
Technology
leaders
© 2008 Nokia Capital ...
Outline
Global view
Brand
Consumer
Operator cooperation
Marketing efficiency
Go-To-Market
Summary
© 2008 Nokia Capital Mar...
Strong operator support for Nokia’s
flagship devices
© 2008 Nokia Capital Markets Day 2008
Strong operator support for Nokia’s
flagship devices
Vodafone:
Nokia E51, E71, E66, E90, N78,
N95, N95 8GB, N85, N96
T-Mob...
Case UK: Subsidies driving device
price to zero
Nokia N96 Nokia 6300 Nokia 6210 Navigator
© 2008 Nokia Capital Markets Day...
Strong operator support for Nokia’s
Internet services
© 2008 Nokia Capital Markets Day 2008
Strong operator support for Nokia’s
Internet services
Nokia
Maps
Free device
£35 per month
© 2008 Nokia Capital Markets Da...
Outline
Global view
Brand
Consumer
Operator cooperation
Marketing efficiency
Go-To-Market
Summary
© 2008 Nokia Capital Mar...
100
Target: Increasing marketing effectiveness
2007::
Device based campaigns led to
fragmentation of media spend
Share of ...
Solution: Theme based marketing
Convergence
Navigation
Productivity
Music
Time
Q1 Q2 Q3 Q4
© 2008 Nokia Capital Markets Da...
Solution: Theme based marketing
Convergence
Navigation
Productivity
Music
Time
Navigation theme
Hero device
Nokia 6210 Nav...
Convergence
Navigation
Productivity
Music
Time
2009::
More wood behind fewer
arrows
Share of marketing spend
per theme
Sol...
Increasing stakes in digital marketing
© 2008 Nokia Capital Markets Day 2008104
Increasing stakes in digital marketing
© 2008 Nokia Capital Markets Day 2008105
Outline
Global view
Brand
Consumer
Operator cooperation
Marketing efficiency
Go-To-Market
Summary
© 2008 Nokia Capital Mar...
Go-To-Market brings Nokia solutions to market
Device Marketing
and retail
Ovi services Partner apps
and services
Operator
...
Go-To-Market: combining devices and services
Nokia Music DevicesNokia Music Store +
© 2008 Nokia Capital Markets Day 2008
Go-To-Market: exciting 360° marketing
Nokia Music DevicesNokia Music Store +
© 2008 Nokia Capital Markets Day 2008
Go-To-Market: cooperation with retailers
© 2008 Nokia Capital Markets Day 2008110
Go-To-Market: Nokia E71 & Email solutions with
operator collaboration
© 2008 Nokia Capital Markets Day 2008
Go-To-Market: Operator cooperation
Orange N96
• Customized user interface
• Services integration
• Orange Downloads
• Oran...
Go-To-Market: Content customization
BBC iPlayer
• BBC programs from the past week.
• BBC iPlayer supports on-demand TV & R...
Go-To-Market – a strategic asset for Nokia
Very sustainable competitive advantage
• Superior geographical coverage and rel...
Outline
Global view
Brand
Consumer
Operator cooperation
Marketing efficiency
Go-To-Market
Summary
© 2008 Nokia Capital Mar...
Consumer insight
Experience brand
Theme based
marketing
Go-To-Market
Building a strategic asset for Nokia
© 2008 Nokia Cap...
Thank you.
118 © Nokia Siemens Networks
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R 52
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R 0
G ...
© 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials136
Capital Markets Day 2008
Rick Simonson
Chief Financial Officer
Agenda
 Myth vs. Reality
 Actions
 Balance sheet and cash flow
 Financial targets
© 2008 Nokia Capital Markets Day 200...
Myth vs. Reality
© 2008 Nokia Capital Markets Day 2008138
139
Nokia = geographically balanced
Units by Geography Net Sales by Geography Gross Profit by Geography
Europe 5
Middle Ea...
Nokia Smartphones = geographically balanced
Geographical split of Nokia smartphone units
Q1-Q3 2008
Source: Nokia
Euro 5 =...
Nokia = less vulnerable to decreasing subsidies
High subsidy markets – e.g. USA, UK
Medium subsidy markets – e.g. Spain
Lo...
Commodity price bubbles have burst
Food = over 50% of spending in rural areas of India
0
50
100
150
200
250
Jan-07 Apr-07 ...
Industry market value by price band = balanced
2008E Device Market Value by Price Band
36%
22%
41%
Mid Range: EUR 75-200
H...
144
Nokia competitive advantages – Not a myth!
• Scale: 39% market share YTD Q3 2008; same as next 4 players
• Ability to ...
Actions
© 2008 Nokia Capital Markets Day 2008145
Set Costs to Reality
1) Cost of Goods Sold
2) Operating Expenses
3) Capital Expenditures
Ongoing through 2009 and 2010
© 2...
Nokia margin advantage
Percent of operating profit
Sony Ericsson
NOKIA
Motorola
Samsung
LGE
Source: Nokia, company reports...
Devices & Services COGS
• Components
• Warrantee
• Royalty
• Freight
• Customs
>90%
COGS Breakdown: >90% Variable
• Compon...
Product cost advantage: two examples
Cost comparison: Relative device+battery materials cost of product pairs
Low end tear...
Devices & Services: COGS reduction
• Commodity prices down 60% from highs
• Excess production capacity in supply chain
Sou...
Devices & Services: OPEX cost reduction
• “Plans” not “Budgets”
• Announced 4th November: 700+ employees impacted
• Announ...
• Targeted actions:
• Estimated CAPEX investment in 2009:
• ~700 million euros (estimated ~850 million euros in 2008)
• Co...
NSN cost reduction plan
Track record of delivery
CoGS
R&D
G&A
• Scale
• Asset reuse
• Design to cost
• Global resource bal...
155
Balance sheet and Cash flow
© 2008 Nokia Capital Markets Day 2008
Balance sheet
Clean, simple, strong
Q3’08 (EUR)
Cash and other liquid assets 7.2B
Debt 4.3B
Net cash 2.9B
© 2008 Nokia Cap...
158
Financial targets
© 2008 Nokia Capital Markets Day 2008158
159
2009 Mobile device market
• Global slowdown in consumer spending
• Currency devaluation
• Credit tightness
• Channel d...
Nokia 2009 financial targets
• Nokia Devices & Services operating margin in the
teens*
• NAVTEQ operating margin somewhat ...
161
Summary
• Reality – strong competitive position
• We are taking action
• Our capital structure is solid
• Our view of ...
© 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials162
Thank you.
Other financial targets
2008E 2009E
Tax Rate* 26% 26%
Capex (m EUR) ~ 850 ~ 700
Depr. and Amort. (m EUR)* ~ 900 ~ 900
Fina...
The Device Portfolio serving
the Planet
Søren Petersen
SVP, Nokia Devices
High-End
Mid-
Range
Low-End
© 2008 Nokia Capital Markets Day 2008165
The High-End comprises several
consumer segments
Style
Leaders
Technology
Leaders
Pragmatic
Leaders
© 2008 Nokia Capital M...
Smartphones for everyone – in
the Mid-Range
Young
Explorers
Family
Providers
© 2008 Nokia
Capital Markets Day 2008
167
The world’s strongest device
portfolio covers the Planet
Explore
Live
Connect
Achieve
© 2008 Nokia Capital Markets Day 200...
Nokia’s systematic device portfolio approach
Essential StyleBusiness Media / Internet
Rational Aspirational
Pricesegments(...
There’s a parallel universe
Developed World Entry Business
High-End
Mid-
Range
Low-End High-End
Mid-
Range
Low-End
Pricese...
Em
erging
M
arket volum
e
dem
and
2004
Productvolumes
2008
Nokia remains the leader in the Entry Business
through
great pl...
Nokia remains the leader in the Entry Business
Nokia 5130
XpressMusic through
great solutions
through
great devices
Nokia ...
© 2008 Nokia Capital Markets Day 2008173
E 71 is the leading messaging solution
© 2008 Nokia Capital Markets Day 2008174
Best Smart Phone for
Professionals
(PC World Latin America
2008 Awards)
Phone of the year
(Mobile Choice UK)
Smartphone of...
UI
Consumer understanding
HW
Platforms
Partnering
R&D
IPR
Sales
Global Scale
Supply
Chain
© 2008 Nokia
Capital Markets Day...
© 2008 Nokia
Capital Markets Day 2008
179
Thank you.
Demand Supply Network
Management
Juha Putkiranta
Senior Vice President,
Demand Supply Network Management
Scale advantage
Nokia
Motorola
Sony Ericsson
Samsung
LGE
(M)
20
40
60
80
100
120
*Sources: Company reports up to 3Q 2008
2...
Responding to customer needs
Nokia N96
170 Handset Variants
250 Sales Package Variants
© 2008 Nokia Capital Markets Day 20...
Combining responsiveness and efficiency:
Excellent ability to adapt
Suppliers
Supply OperationsEngine Operations
150 suppl...
Advantages in rapidly
changing markets
Flexible inventory management:
• 75% of inventory held by suppliers immediately
pri...
Nokia Demand Supply Network
Architecture
EcosystemInnovation
ResponsivenessCost effective
Global reachPull driven
© 2008 N...
Eco-System: Fast response for
markets needs
Komarom industrial village
© 2008 Nokia Capital Markets Day 2008187
High responsiveness combined with
low inventories
Days of supply
Order to deliveryHigh
Low
1996 2008
© 2008 Nokia Capital ...
… and extending the
lead further
Variation Management
Global Manufacturing
Scale and Efficiency
Ensuring efficiency and fl...
Superior Powers of
Collaboration
Jean-Francois Baril
Senior Vice President
Sourcing
Supplier
Network
Great
Products
Customer Satisfaction
Operational
Excellence
Connecting the Inside with
the Outside
© 2008...
Operational mode
Supplier portfolio


Collaboration

Percent of operating profit
Sony Ericsson
NOKIA Motorola Samsung
L...
0
25
50
75
100
125
150
Operational flexibility
R&D and supplier
collaboration
Terminal Vendor Shipments (M) Nokia 6300
Ret...
Leadership
and
values
Investment
Capability
Lowest
Total Cost
Product
Performance
Time to
Market
Nokia
#1 customer
Working...
Balanced supplier portfolio
# of Suppliers
Hardware
Software
& Content
Shares by commodity
© 2008 Nokia Capital Markets Da...
Company Confidential
Sharp peak of
innovative
companies for
picking new
technologies
Weight on a
few large
suppliers
No lo...
Unleashing the power of
collaboration: 1+1=11
Passion and Trust
Co-creation
Transparency
Rewards
Supplier
• Capabilities
•...
Company Confidential
2/5 Collaboration
2/5 Supplier portfolio
1/5 Robust processes
..and “a pinch” of leadership
Risk mana...
Company Confidential
• Supplier requirements for Ethics, Labour, Health & Safety
and Environment since the 1990s
• > 50 on...
Thank you.
Nokia Smartphone
Software
David Rivas
Vice President, S60 SW Technology Management
Four Pillars of Nokia
Smartphone
Execution
Integrated
Experiences
Consumer
Insight
Internal and External
Software Innovation
Global
Presence
© 2008 Nokia Capital Mar...
Symbian OS
In 200+ Million Smartphones
Worldwide
Shipments Since January 2004
Source: Canalys estimates, Worldwide smart mobile devices, November 2008
Millions
Content and Services
Anywhere, Anytime –
Today
3G
Battery
optimized
Bluetooth
WLAN
Tactile
feedback
Multitasking
Touch
UI
Sensors
GPS
Internet
video
Watch
TV
Stream
live
media
Chat
Send group
messages
Share
content
Share
media
Blog
Social
networking
Connec...
Software Enables Innovation
Intention ActionExecution
Focus on differentiating
consumer experiences
Reduce costs and
shift focus to value
add in softw...
Nokia SW Strategy
Impacting the Whole
Industry
Open Source with Symbian Foundation
Improve operational set-up
Further increase foundation
platform attractiveness for handset
vendors
Create one common platf...
We have 50+ announced
supporters, including the 10
Founding members.
8 Device manufacturers
7 Semiconductor vendors
9 Netw...
Multiple UI Styles and Capabilities
UI Portfolio spans broadest range of consumers and needs
S60
Non-Touch
S60
Touch Maemo...
Best in class touch
solution enables
large volumes and
growth
Direct UI simplifies
interaction with
standard strokes
and g...
Integrated
Services
Context and
Presence
Smart
Widgets
Multiple
Homescreens
Thank You
Context is here, there, now,
then and in the future…
Ilkka Raiskinen
SVP, Context and Advertising Solutions
220
People want relevance
© 2008 Nokia Capital Markets Day 2008
221
People need location
based services
© 2008 Nokia Capital Markets Day 2008
222
Number Of Active Map Users HasIncreased Five Fold
From 2005 to 2008
Source: Live UK panels 2005-2008 (all together 1 1...
Nokia is the market leader
in GPS devices
223 © 2008 Nokia Capital Markets Day 2008
Navigation…it’s not all about
cars
225 © 2008 Nokia Capital Markets Day 2008
Location based services
are more than A to B
226 © 2008 Nokia Capital Markets Day 2008
227
S&S
STRATEGY
Bringing us all together: People, Places, Time
Examples show different
activities of/with different
peopl...
How do we compare?
228 © 2008 Nokia Capital Markets Day 2008
Nokia Maps 3.0 Google Maps for mobile*
Map data coverage 200+ countries 100+ countries
Pre-loading of maps
via PC / Mac
ye...
Where do we go from
here?
231 © 2008 Nokia Capital Markets Day 2008
Costs Related to a Contextual Web
• The initial cost associated with building our location based services
were heavy on th...
Nokia Maps promotional SMS had a79% long-term impact
• The target group got a free
Nokia Navigation Licence (30
days)
• Th...
234
Better context – richer service experience:
Having sushi with friends
Find out
who’s in town
See menus,
prices and
ava...
Maps on Ovi/Nokia
Maps/Convert friends
to use service
Phone
call/Reservation
tool/Message
Maps on
Ovi/Browser
Maps on
Ovi/...
Thank you.
237
Nokia Messaging Initiatives
Tom Furlong
SVP, S&S Consumer Messaging
Messaging Markets and Initiatives
Enterprise
Consumer
Emerging
Direct access enterprise clients
• Mail for Exchange
• Lotu...
Enterprise Messaging
© 2008 Nokia Capital Markets Day 2008239
Winning device portfolio and device-led solutions
• Strong Nokia device portfolio, led by Nokia Eseries range
• Both Nokia...
Enterprise email available for 80 million Nokia devices
• Mail for Exchange client offers
freedom to mobilize email, calen...
Consumer Messaging
© 2008 Nokia Capital Markets Day 2008242
Mobile Messaging Market Opportunity:
500 million accounts by 2011*
** Sources: Nokia and external analyst estimates
Revenu...
Investing to win
November 4, 2008
Nokia acquires OZ Communications
February 10, 2006
Nokia acquires Intellisync
• Leading ...
A new Nokia service for mobile email and IM
pre-loaded on Nokia Series 40 & S60 devices
Your favorite devices now come wit...
Designed to be bundled with
data plans
Next generation email client
Nokia Messaging: Designed to be Easy
Easy to set up Ea...
AvailabilityReachPartnerships
Service is Now Live
Internet
Portals:
Nokia
Messaging
Service:
Mobile
Operators:
Accounts
Pu...
Mobile Messaging for the Masses
Global reach to establish messaging for the masses
•From smartphones to feature phones for...
Ovi Messaging Services
© 2008 Nokia Capital Markets Day 2008249
Mail on Ovi: yourname@ovi.com
• A free service for consumers of all Nokia phones
• An integrated Ovi.com experience
• Live...
Designed for Emerging Markets
• 25% of the world has email accounts. Mail on Ovi is for the 75% without
• First time inter...
Mobile Messaging for the Masses
Leading Enterprise Solutions
• Enterprise connectivity on mainstream devices
• All your fa...
Thank You.
© 2008 Nokia Capital Markets Day 2008253
NOKIA CMD 2008
December 4, 2008
Breakout Session
Music and Gaming
Tero Ojanperä, EVP, Entertainment & Communities
Liz Schi...
NOKIA CMD 2008
December 4, 2008
Breakout Session
Music and Gaming
• Aggressive Nokia Music Store roll out
o 12 markets in ...
NOKIA CMD 2008
December 4, 2008
Breakout Session
Music and Gaming
• Other milestones
o Chinese language N-Gage application...
Dr. Henry Tirri, PhD
SVP & Head of Nokia Research
Nokia Research
Sharpening Innovation to Build the Future
Rich Context Modeling
Meet the needs of individuals on
their terms.
New User Interface
Interact joyfully and intuitively
t...
• Three years of actively exploring
open innovation
• Selective deep collaborations with
world-leading institutions
• Chin...
• Near Field Communication
• Indoor positioning
• Environmental analysis
• GPS
• Cameras
• Accelerometers
• Light sensors
...
Liberate data from application silos based on user behavior
New User Experiences
Lenses Top-down is a valuable
interaction...
Wild Possibilities in a Sensor-Filled World
• Tracking of influenza outbreaks through personal health monitoring
in popula...
A Vision of the Deep Future
Morph
• Result of an invitation from MoMA
• Product of nanoscience work between
NRC and Univ. ...
Nokia in North America
Mark Louison
President
Nokia Inc.
Discussion Points
• North American Market Context
• Update on Nokia’s NAM Focus Areas
–Expand Portfolio
–Invest in Key Tec...
North America Market Context
264 © 2008 Nokia Capital Markets Day 2008
Growth Opportunities
• Q3 08 Population (338 million) is 85% penetrated
• Q1-Q3 2008 YOY industry unit growth: approx 9%
t...
North America Focus Areas
Leverage Brand Leadership
Invest in Key Technologies
Deliver Compelling Solutions
Expand Our Por...
Expand Portfolio
© 2008 Nokia Capital Markets Day 2008267
Growing US Carrier Portfolio
Nokia 6205
(Verizon)
Nokia 6555
(AT&T)
Nokia 2600
(AT&T)
Nokia 6650
(AT&T)
Nokia 6205
Dark Kn...
Growing US Retail & Online Portfolio
N96 N95 8GB
N73 N810
N78N95 N82 N81
Nokia E51
5310 6300 2760 2630
Nokia E71
© 2008 No...
Canada Portfolio
N95 8GB 5310 5310 3555 6086 2680
2760 6555 3500 3500 6301
Rogers
Fido MVNOs
E71
1208 Petro-Canada
7-Eleve...
Invest in
Key Technologies
271 © 2008 Nokia Capital Markets Day 2008
Deliver
Compelling
Solutions
272 © 2008 Nokia Capital Markets Day 2008
Create a
Winning Workforce© 2008 Nokia Capital Markets Day 2008273 © 2008 Nokia Capital Markets Day 2008
Building a
Leading Brand
274 © 2008 Nokia Capital Markets Day 2008
Print
Early Stage Work Has Begun
© 2008 Nokia Capital Markets Day 2008
Summary
Regional Mobile Device Update
India Africa China
Colin Giles
Senior Vice President
Distribution East
India
© 2008 Nokia Capital Markets Day 2008278
Nokia is the largest Multinational in India
• Investing in and growing the
market
• Taking mobility to the
masses
• Provid...
Monthly Subscriber Additions
6
7 7 7 7
8 8
2
2 2 2 2
2 2
8
9 9 9 9
10
10
0
2
4
6
8
10
12
Apr.08
M
ay.08
Jun.08
Jul.08
Aug....
• Rural is likely to account for over 50% of new
subscribers
• Services still nascent but picking up
• 3G Roll-out
• Incre...
Nokia India: Strong position
• Nokia is India’s most trusted brand
• Nokia’s brand preference continues to be strong at
77...
Africa
© 2008 Nokia Capital Markets Day 2008283
284
Region with many faces
New African consumers
Emerging markets
Developed
markets
284
Dimensions
• More than 900 million...
285
“My First Nokia” roadshow
reaching the masses
The consumer is hungry for
information as demonstrated by
the amazing re...
286
Significant growth expected
• Mobile often the only choice of telephony
• Mobile likely to be first internet experienc...
China
© 2008 Nokia Capital Markets Day 2008287
Mobile device market growth in 1Q-3Q 2008
strong in China
Source: Nokia
• Most populous nation in the world 1.36 billion
i...
A Strong Footprint in China
• One of the biggest Foreign
Invested Companies in China
• Leader in Corporate
Responsibility ...
Nokia with strong sales growth
in China
Source: Nokia
• Nokia had 16% volume growth YoY 1Q-
3Q08
• Growth driven by strong...
Nokia remains committed to capturing
rural growth in China
• Rural market growing significantly
faster than total market
•...
Nokia the leader in smartphone sales
in China
Estimated Quarterly Smartphone
sales and Nokia share
• Nokia the leader in s...
Operator restructuring will have positive effects
for Chinese consumers and the mobile industry
• Increased competition an...
Nokia’s leadership in Distribution
and Brand
Data Source: Synovate
Nokia brand preference among Chinese consumers
• Nokia ...
Conclusions
© 2008 Nokia Capital Markets Day 2008295
Opportunity for Growth Still Continues
• Connecting the next Billion…
• Distribution Development builds barriers
• Nokia L...
Thank You.
Company Confidential
© 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials298
NAVTEQ Overview
Judson Green
President & CEO,...
EnterpriseEnterprise
Mobile DevicesMobile Devices
In-Dash VehicleIn-Dash Vehicle
Internet & LBSInternet & LBS
Global Leade...
Enterprise
Strong Customer Relationships
Automotive
OEMs
System
Vendors
Telematics
Internet &
LBS
MobileMobile
DevicesDevi...
Product Superiority = Accuracy + Richness + Breadth
Three Principal Products
• Road network data with rich attribution req...
Field Driven Data Capture & Verification
• More than 1 000 geographic analysts
in more than 180 offices around
the world
•...
Superior Detail and Richness
Turn RestrictionsTurn Restrictions One-WaysOne-Ways Access RestrictionsAccess Restrictions Un...
305
Innovative New Content and Features
Navigable
Content
Display
Content
Enabling
Content
Pedestrian
Content
Informationa...
306
• Volume growth moderating
• Lower ASPs dampening revenue
growth
• Customers demanding new content
to differentiate
• ...
307
Acquisition Update
• Transaction closed July 10, 2008
• NAVTEQ operated as an independent unit
• New governance proced...
308
NAVTEQ’s Role In Support of Nokia
• Principal source of:
– digital maps and POIs
– pedestrian maps, local
content & tr...
Examples of Nokia/NAVTEQ Collaboration
Map sensor data
Content & coverage
roadmaps
Community input
© 2008 Nokia Capital Ma...
NAVTEQ’s Future Direction
• Development of innovative new content & capabilities
• Rapid expansion to new geographies
• Fo...
Company Confidential
© 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials311
Thank you.
312 © Nokia Siemens Networks
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Nokia Capital Markets Day 2008
Nokia Capital Markets Day 2008
Nokia Capital Markets Day 2008
Nokia Capital Markets Day 2008
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Nokia Capital Markets Day 2008
Nokia Capital Markets Day 2008
Nokia Capital Markets Day 2008
Nokia Capital Markets Day 2008
Nokia Capital Markets Day 2008
Nokia Capital Markets Day 2008
Nokia Capital Markets Day 2008
Nokia Capital Markets Day 2008
Nokia Capital Markets Day 2008
Nokia Capital Markets Day 2008
Nokia Capital Markets Day 2008
Nokia Capital Markets Day 2008
Nokia Capital Markets Day 2008
Nokia Capital Markets Day 2008
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Nokia Capital Markets Day 2008

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Nokia Capital Markets Day 2008

  1. 1. Capital Markets Day 2008 Olli-Pekka Kallasvuo President and CEO
  2. 2. 1) Nokia’s competitive advantages 2) Business review for 2008 3) Focus areas for 2009 Agenda © 2008 Nokia Capital Markets Day 20082
  3. 3. 3 Nokia competitive advantages – more relevant in this environment Source: Interbrand 1 2 3 4 7 8 9 10 6 5 Scale: 39% market share YTD Q3 2008 Ability to invest in innovation: Services & Software Brand: #5 worldwide, #1 in Asia and #1 Europe Manufacturing and logistics: World leading position Distribution: Substantial lead in China, India, and MEA Cost & IPR: Significant competitive advantage © 2008 Nokia Capital Markets Day 2008
  4. 4. 2008 Events Nokia Siemens Networks Services & Software Smartphones Device Portfolio STATUSSUBJECT NAME DATE 2008 Nokia 2008 Business review © 2008 Nokia Capital Markets Day 20084
  5. 5. The device business: profits Mobile device operating profit share (Q1-Q3 2008) 39% 61% Source: Nokia estimates and company reports of Samsung, Motorola, Sony Ericsson, LG, RIM and Apple Winner takes the most NokiaOthers © 2008 Nokia Capital Markets Day 20085
  6. 6. Source: IDC – Estimates for 2008 Sept. 2008 (USD-Euro exchange rate=0.773) Portable Music & Media Players Still & Video Digital Cameras Portable GPS Devices The device business: value capture Opportunities to capture value from other industries €27Bn €33Bn €8Bn © 2008 Nokia Capital Markets Day 20086
  7. 7. Room for growth 100% India Bangladesh Sub-Saharan Africa China Egypt Pakistan Indonesia Iran 806040200% Source: Nokia estimates penetration in large emerging markets The device business: growth opportunities © 2008 Nokia Capital Markets Day 20087
  8. 8. The only global portfolio Essential StyleBusiness Media / Internet Rational Aspirational Price segments (EUR) Live Premium Connect Live Entry Explore 50 100 150 200 500 Achieve Nokia 1200 © 2008 Nokia Capital Markets Day 20088
  9. 9. 2008 Events Nokia Siemens Networks Services & Software Smartphones Device Portfolio STATUSSUBJECT NAME DATE 2008 Nokia 2008 Business review WIP © 2008 Nokia Capital Markets Day 20089
  10. 10. Smartphones for the fourth quarter Nokia N96 Nokia E71 Nokia 5800 XpressMusic Nokia N85 Nokia E63 WIP © 2008 Nokia Capital Markets Day 200810
  11. 11. 2008 Events Nokia Siemens Networks Services & Software Smartphones Device Portfolio STATUSSUBJECT NAME DATE 2008 Nokia 2008 Business review WIP WIP © 2008 Nokia Capital Markets Day 200811
  12. 12. 12 Nokia Maps 2.0 Services & Software launches Share on Ovi Files on Ovi Ovi.com sync Nokia Ovi Suite N-Gage Jan/08 Feb/08 Mar/08 Apr/08 May/08 Jun/08 Jul/08 Aug/08 Sep/08 Oct/08 Nokia Comes with Music Nov/08 Dec/08 Maps 3.0, Maps on Ovi, Nokia Messaging 11th Nokia Music Store Mail on Ovi © 2008 Nokia Capital Markets Day 2008 WIP
  13. 13. 2008 Events Nokia Siemens Networks Services & Software Smartphones Device Portfolio STATUSSUBJECT NAME DATE 2008 Nokia 2008 Business review WIP WIP © 2008 Nokia Capital Markets Day 200813
  14. 14. Nokia Siemens Networks © 2008 Nokia Capital Markets Day 200814
  15. 15. 2008 Events Nokia Siemens Networks Services & Software Smartphones Device Portfolio STATUSSUBJECT NAME DATE 2008 Nokia 2008 Business review WIP WIP © 2008 Nokia Capital Markets Day 200815
  16. 16. Important 2008 milestones © 2008 Nokia Capital Markets Day 200816
  17. 17. Important 2008 milestones © 2008 Nokia Capital Markets Day 200817
  18. 18. © 2008 Nokia Capital Markets Day 200818 2008 Events Nokia Siemens Networks Services & Software Smartphones Device Portfolio STATUSSUBJECT NAME DATE 2008 Nokia 2008 Business review WIP WIP
  19. 19. Cost base sized correctly Growth opportunities Services & Software Email UI and Software Platforms 2009 Focus Areas © 2008 Nokia Capital Markets Day 200819
  20. 20. Cost base sized correctly • Prioritization leads to specific cost reductions in all areas • We will execute our strategy, but at appropriate cost levels 2009 Focus areas © 2008 Nokia Capital Markets Day 200820
  21. 21. Growth opportunities • Services & Software • Take market share • Capture value from adjacent industries • Nokia device enhancements • NAVTEQ 2009 Focus areas © 2008 Nokia Capital Markets Day 200821
  22. 22. Simple and intuitive Mail on Ovi for Nokia Series 40 Devices Nokia Life Tools 2009 Focus areas © 2008 Nokia Capital Markets Day 200823
  23. 23. Simple and intuitive Mail on Ovi for Nokia Series 40 Devices Nokia Life Tools 2009 Focus areas © 2008 Nokia Capital Markets Day 200824
  24. 24. Simple and intuitive Mail on Ovi for Nokia Series 40 Devices Nokia Life Tools 2009 Focus areas © 2008 Nokia Capital Markets Day 200825
  25. 25. 2009 Focus areas © 2008 Nokia Capital Markets Day 200826
  26. 26. 2009 Focus areas © 2008 Nokia Capital Markets Day 200827
  27. 27. Mobile Messaging for the Masses Device Breadth, Global Reach 2009 Focus areas © 2008 Nokia Capital Markets Day 200828
  28. 28. Software and UI 2009 Focus areas © 2008 Nokia Capital Markets Day 200829
  29. 29. Shaping the future © 2008 Nokia Capital Markets Day 200830
  30. 30. © 2008 Nokia31 Extending the lead in devices Kai Öistämö Executive Vice President, Devices
  31. 31.  Mobile Phone becomes Mobile Computer  Focus on solution not product  New organization has reduced overlaps  Focus back on hero products © 2008 Nokia Capital Markets Day 200832
  32. 32. Hold home field advantage  Defend in markets where we are strong  Value for money  Highest perceived value  Nokia brand strength  Portfolio is king © 2008 Nokia Capital Markets Day 200834
  33. 33. Exploit growth opportunities  Starts with the consumer  Strategic collaboration with US carriers  Shipments to Korea scheduled to begin in 2009 © 2008 Nokia Capital Markets Day 200835
  34. 34. Grow in emerging markets through value add © 2008 Nokia Capital Markets Day 200836
  35. 35. Key drivers for 2009  User Experience  Innovation  Scale and Cost Efficiency © 2008 Nokia Capital Markets Day 200837
  36. 36. Gain user experience leadership  Across platforms, geographies, price points  One size does NOT fit all  User experience defines form factor  Tailored solutions Nokia E63Nokia 6210 Navigator© 2008 Nokia Capital Markets Day 200838
  37. 37. Nokia Entry and Life Tools © 2008 Nokia Capital Markets Day 200839
  38. 38. Nokia Nseries  Over 80% of N95 owners access the web  Estimate over 100 million Nseries sold by Q1 2009 © 2008 Nokia Capital Markets Day 200840
  39. 39.  Touch and physical QWERTY  Customizable Homescreen – your favorite contacts & services at a glance  32 GB of on-board memory + 16 GB card slot = 48 GB of memory  3.5” widescreen with 640x360 resolution  5 Mpx camera with Carl Zeiss optics Nokia N97 © 2008 Nokia Capital Markets Day 200841
  40. 40. © 2008 Nokia Capital Markets Day 200842
  41. 41. © 2008 Nokia Capital Markets Day 200843
  42. 42. Drive innovation through platforms  Innovation in hardware and software  Symbian Foundation, Trolltech in software  UI puts people first © 2008 Nokia Capital Markets Day 200844
  43. 43. < Navigation has reached the mass market 50% of 2009 portfolio with built in GPS All S60 with Maps, first Series 40 with GPS Navigation coming to entry markets Open map APIs drive new location services © 2008 Nokia Capital Markets Day 200845
  44. 44. Maximize scale and cost efficiency © 2008 Nokia Capital Markets Day 200846
  45. 45. % Gross margin% Nokia 6300 3.07 4.07 5.07 7.07 8.07 9.07 10.07 11.07 12.07 1.08 2.08 3.08 4.08 5.08 6.08 6.07 2.07 1.07 Retailpricein€ Time © 2008 Nokia Capital Markets Day 200847
  46. 46. Best Smart Phone for Professionals (PC World Latin America 2008 Awards) Phone of the year (Mobile Choice UK) Smartphone of the Year (Mobilgalan, Sweden) Editor’s choice (CNET Asia) Smartphone of the year (PC World India)
  47. 47. © 2008 Nokia51 Lead in user experience the world over Focused on innovation Scale and structure brings cost efficiency © 2008 Nokia Capital Markets Day 200851
  48. 48. Company Confidential Services & Software Niklas Savander EVP, Services & Software
  49. 49. 2008 © 2008 Nokia Capital Markets Day 200854
  50. 50. Nokia Music Comes With Music Nokia Maps 2.0 Nokia Maps 3.0 Share on Ovi N-GageNokia Messaging Maps on Ovi © 2008 Nokia Capital Markets Day 200855
  51. 51. €40 billion in 2011 © 2008 Nokia Capital Markets Day 200856
  52. 52. Sega.co m © 2008 Nokia Capital Markets Day 200857
  53. 53. © 2008 Nokia Capital Markets Day 200858
  54. 54. 12 markets - 3 continents 35% of visitors from Mobile Devices Comes With Music, now live in the UK Four major labels and indies on board © 2008 Nokia Capital Markets Day 200859
  55. 55. Coverage in >200 countries 70 turn-by-turn navigable countries Navigation license in 70% of GPS enabled devices in 3Q08 © 2008 Nokia Capital Markets Day 200860
  56. 56. Sales in over 130 countries More than 1/3 come back for more 23 games published on N-Gage Device N-Gage bundles ramping up starting 3Q08 © 2008 Nokia Capital Markets Day 200861
  57. 57. © 2008 Nokia Capital Markets Day 200862
  58. 58. © 2008 Nokia Capital Markets Day 200863
  59. 59. © 2008 Nokia Capital Markets Day 200866
  60. 60. © 2008 Nokia Capital Markets Day 200867
  61. 61. © 2008 Nokia Capital Markets Day 200868
  62. 62. © 2008 Nokia Capital Markets Day 200869
  63. 63. © 2008 Nokia Capital Markets Day 200870
  64. 64. © 2008 Nokia Capital Markets Day 200871
  65. 65. © 2008 Nokia Capital Markets Day 200872
  66. 66. © 2008 Nokia Capital Markets Day 200873
  67. 67. © 2008 Nokia Capital Markets Day 200874
  68. 68. Nokia Music Store for US, South Africa and Brazil Comes With Music 100% of chart coverage at sales start 13 additional markets on >7 devices across price bands in 2009 © 2008 Nokia Capital Markets Day 200875
  69. 69. Several operator cooperation projects launched or in the pipeline Expand usage of device bundles N-Gage in Chinese language and with QQ Coin 1Q09 – 15K to 20K retail purchase points in India Support for 18 devices, 23 new titles coming © 2008 Nokia Capital Markets Day 200876
  70. 70. 2008 Nokia Music Comes With Music Nokia Maps 2.0 Nokia Maps 3.0 Maps on Ovi N-Gage Nokia Messaging Share on Ovi Sega.com © 2008 Nokia Capital Markets Day 200878
  71. 71. 80 Markets Unit Building the brand and bringing Nokia solutions to market Anssi Vanjoki EVP, Markets, Nokia
  72. 72. Outline Global view Brand Consumer Operator cooperation Marketing efficiency Go-To-Market Summary © 2008 Nokia Capital Markets Day 2008
  73. 73. Nokia is best positioned to grow in a diverse and global market 9% 10% 8% North America pop. 338 million Latin America pop. 548 million Greater China pop. 1361 million Europe pop. 896 million Mobile penetration % Market volume growth (YoY) % Nokia estimated volume share % Source: Nokia (Q3, 2008) Middle East and Africa pop. 1357 million Asia-Pacific pop. 2192 million 43% 13% 48% 87% 78% 33% 48% 12% 40% 111% -1% 38%44% 19% 55% © 2008 Nokia Capital Markets Day 200882
  74. 74. Outline Global view Brand Consumer Operator cooperation Marketing efficiency Go-To-Market Summary © 2008 Nokia Capital Markets Day 2008
  75. 75. Top 10 Brands More than 1 billion people use a Nokia device every day Connecting People in new and better ways Nokia - The 5th most valuable brand in the world (Interbrand, 2008) © 2008 Nokia Capital Markets Day 2008 84
  76. 76. Mercedes-Benz McDonald's BMW Motorola Google Microsoft Samsung Sony Coca-Cola Nokia % 20% 40% 60% 0% 20% 40% 60% Your Most Loved and Admired Brands World'sMostLovedand AdmiredBrands Nokia is the most loved and admired brand in the world Source: Nokia brand Research 2008 © 2008 Nokia Capital Markets Day 2008
  77. 77. Nokia has the highest brand preference 0% 50% 100% NAM Brazil LTA China India SEAP SSA MENA Eurasia W.Europe C.Europe Global Brand preference in mobile devices by Area Q3 2008 Global= 46% Nokia Preference Other Brands #2 Competitor Source: Nokia 2008 © 2008 Nokia Capital Markets Day 2008
  78. 78. Outline Global view Brand Consumer Operator cooperation Marketing efficiency Go-To-Market Summary © 2008 Nokia Capital Markets Day 2008
  79. 79. Consumers drive our thinking Nokia segmentation model © 2008 Nokia Capital Markets Day 2008
  80. 80. Consumers drive our thinking Nokia segmentation model People are more engaged to the category People are willing to spend more Internet and entertainment are of high interest Key findings from Segmentation3 © 2008 Nokia Capital Markets Day 2008
  81. 81. Consumers drive our thinking Technology Leaders Modern, leading edge consumers Technology is their life Very positive towards mobile entertainment Highly sociable with an active lifestyle Technology Leaders © 2008 Nokia Capital Markets Day 2008
  82. 82. Consumers drive our thinking Segmented offering Pragmatic Leaders Young Explorers Technology leaders © 2008 Nokia Capital Markets Day 200892
  83. 83. Outline Global view Brand Consumer Operator cooperation Marketing efficiency Go-To-Market Summary © 2008 Nokia Capital Markets Day 2008
  84. 84. Strong operator support for Nokia’s flagship devices © 2008 Nokia Capital Markets Day 2008
  85. 85. Strong operator support for Nokia’s flagship devices Vodafone: Nokia E51, E71, E66, E90, N78, N95, N95 8GB, N85, N96 T-Mobile: Nokia E66, E71, E51, N82, N95 8GB, N96 O2: Nokia E66, E71, N78, N79, N95, N95 8GB, N96 E-Plus: Nokia E71, E66, N85 Germany: €150-200 subsidy for Nokia high-end devices © 2008 Nokia Capital Markets Day 2008
  86. 86. Case UK: Subsidies driving device price to zero Nokia N96 Nokia 6300 Nokia 6210 Navigator © 2008 Nokia Capital Markets Day 2008 Strong operator support for Nokia’s flagship devices
  87. 87. Strong operator support for Nokia’s Internet services © 2008 Nokia Capital Markets Day 2008
  88. 88. Strong operator support for Nokia’s Internet services Nokia Maps Free device £35 per month © 2008 Nokia Capital Markets Day 2008
  89. 89. Outline Global view Brand Consumer Operator cooperation Marketing efficiency Go-To-Market Summary © 2008 Nokia Capital Markets Day 2008
  90. 90. 100 Target: Increasing marketing effectiveness 2007:: Device based campaigns led to fragmentation of media spend Share of marketing spend by product N95 N73 N81 E65 E61 6600 3100 323077008500 N82 5500 N78 3250 1240 E90 7560 5100 © 2008 Nokia Capital Markets Day 2008
  91. 91. Solution: Theme based marketing Convergence Navigation Productivity Music Time Q1 Q2 Q3 Q4 © 2008 Nokia Capital Markets Day 2008
  92. 92. Solution: Theme based marketing Convergence Navigation Productivity Music Time Navigation theme Hero device Nokia 6210 Navigator Supporting devices Nokia 6220 Classic Nokia N95 8GB Nokia N85 Nokia E71 Nokia E66 Nokia Maps © 2008 Nokia Capital Markets Day 2008
  93. 93. Convergence Navigation Productivity Music Time 2009:: More wood behind fewer arrows Share of marketing spend per theme Solution: Theme based marketing Music Email Convergence Navigation © 2008 Nokia Capital Markets Day 2008
  94. 94. Increasing stakes in digital marketing © 2008 Nokia Capital Markets Day 2008104
  95. 95. Increasing stakes in digital marketing © 2008 Nokia Capital Markets Day 2008105
  96. 96. Outline Global view Brand Consumer Operator cooperation Marketing efficiency Go-To-Market Summary © 2008 Nokia Capital Markets Day 2008
  97. 97. Go-To-Market brings Nokia solutions to market Device Marketing and retail Ovi services Partner apps and services Operator customization and services © 2008 Nokia Capital Markets Day 2008
  98. 98. Go-To-Market: combining devices and services Nokia Music DevicesNokia Music Store + © 2008 Nokia Capital Markets Day 2008
  99. 99. Go-To-Market: exciting 360° marketing Nokia Music DevicesNokia Music Store + © 2008 Nokia Capital Markets Day 2008
  100. 100. Go-To-Market: cooperation with retailers © 2008 Nokia Capital Markets Day 2008110
  101. 101. Go-To-Market: Nokia E71 & Email solutions with operator collaboration © 2008 Nokia Capital Markets Day 2008
  102. 102. Go-To-Market: Operator cooperation Orange N96 • Customized user interface • Services integration • Orange Downloads • Orange Traffic TV • Orange Email and more… © 2008 Nokia Capital Markets Day 2008
  103. 103. Go-To-Market: Content customization BBC iPlayer • BBC programs from the past week. • BBC iPlayer supports on-demand TV & Radio - Streaming and DRM Download over Wi-Fi, plus Streaming on select 3G networks Nokia Video Center • Program feeds for BBC, SKY and ITV © 2008 Nokia Capital Markets Day 2008
  104. 104. Go-To-Market – a strategic asset for Nokia Very sustainable competitive advantage • Superior geographical coverage and relationships with main actors • Critical mass of skillful solutions selling resources • Very strong Go-To-Market process • Seamless synchronization of GTM process and Demand-Supply network process © 2008 Nokia Capital Markets Day 2008
  105. 105. Outline Global view Brand Consumer Operator cooperation Marketing efficiency Go-To-Market Summary © 2008 Nokia Capital Markets Day 2008
  106. 106. Consumer insight Experience brand Theme based marketing Go-To-Market Building a strategic asset for Nokia © 2008 Nokia Capital Markets Day 2008
  107. 107. Thank you.
  108. 108. 118 © Nokia Siemens Networks R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: Nokia Siemens Networks Simon Beresford-Wylie Chief Executive Officer
  109. 109. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 119 © Nokia Siemens Networks Progress update Our direction and assets Our targets Industry and market trends
  110. 110. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 120 © Nokia Siemens Networks
  111. 111. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 121 © Nokia Siemens Networks Financial performance – the first six quarters Net sales and gross margin (non-IFRS) 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 28.9% 29.2% 30.4% 30.4% 31.5% 31.2% Gross margin % Net sales EUR millions 4071 3438 3703 4604 3404 3504 -64 110 199 81 274 177 -1.9% 3.0% 4.3% 2.4% 6.7% 5.1% -100 -50 0 50 100 150 200 250 300 350 400 450 -3 -2 -1 0 1 2 3 4 5 6 7 8 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Operating profit EUR millions Operating margin % Operating profit and operating margin (non-IFRS) Source: Nokia Siemens Networks
  112. 112. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 122 © Nokia Siemens Networks Industry-leading OPEX efficiency OPEX* 2008 first three quarters OPEX* as % of net sales 2008, first three quarters OPEX % of net sales 40 30 20 10 0 50 26% 29% 33% Competitor A** Nokia Siemens Networks Competitor B** **Competitor A and B figures are group level OPEX EUR millions 4000 3000 2000 1000 0 5000 Competitor A** Nokia Siemens Networks Competitor B** Estimated carrier business related OPEX * Non-IFRS figures for Nokia Siemens Networks, excluding special items for Competitor A and B Source: Company reports, Nokia Siemens Networks estimates
  113. 113. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 123 © Nokia Siemens Networks Scale and installed base Service management and charging Connectivity Content and end-user applications Core Network & service mgmt ChargingSubscriber data mgmt Consulting, Integration Implementation Care Managed Services Transport Wireline access Wireless access #2 #3 #3 #2 #2 #1#1 #2 Source: Company reports, Nokia Siemens Networks estimates
  114. 114. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 124 © Nokia Siemens Networks Industry and market trends Our direction and assets Our targets Progress update
  115. 115. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 125 © Nokia Siemens Networks Telecom infrastructure market - last 10 years 100 200 EUR billions 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008E Wireline sales incl. related services Wireless sales incl. related services Source: Company reports, Nokia Siemens Networks estimates
  116. 116. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 127 © Nokia Siemens Networks Telecom infrastructure market outlook 2009: decline of 5% or more Total vendor sales of infrastructure products and related services Wireless infra Wireline infra Services (wireline and wireless) 100 20 40 60 80 120 0 2006 2007 2008E 2009E EUR billions Source: Company reports, Nokia Siemens Networks estimates
  117. 117. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 126 © Nokia Siemens Networks Downturn brings challenge and opportunity Connectivity Content and end-user applications Service management and charging • Largest spend • Upgrades with clear payback to continue • Interest in operational efficiency solutions • Increased interest in outsourcing • Split of major IT projects into multiple focused ones • Interest in process simplification and automation solutions • Increased partnering with Internet players and content providers • Operators’ development focus in communication
  118. 118. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 128 © Nokia Siemens Networks Our direction and assets Industry and market trends Progress update Our targets
  119. 119. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 129 © Nokia Siemens Networks Continue to work on basics Effective and efficient operations Tight focus on profitability and cash flow Leverage global resources Culture and values Business ethics and social responsibility
  120. 120. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 130 © Nokia Siemens Networks Focus on cost reduction Track record of delivery CoGS R&D G&A • Scale • Asset reuse • Design to cost • Global resource balancing • Supply chain optimization • Supplier and subcontractor consolidation • IT and process development • Real estate consolidation Levers for ongoing cost reduction Annual cost synergy estimate by function S&M ~ € 1.1 Bn ~ € 0.2 Bn ~ € 0.6 Bn ~ € 0.1 Bn Source: Nokia Siemens Networks
  121. 121. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 131 © Nokia Siemens Networks Build for leadership in enriched customer experience and network efficiency Connectivity Content and end-user applications Service management and charging Network efficiency Enriched customer experience
  122. 122. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 132 © Nokia Siemens Networks Strong assets drive differentiation Connectivity Content and end-user applications Service management and charging Multi- radio and LTE Global Service Delivery ChargingSDM Core DWDM, backhaul Network efficiency Enriched customer experience Service Mgmt OSS
  123. 123. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 133 © Nokia Siemens Networks Our targets Industry and market trends Progress update Our direction and assets
  124. 124. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 134 © Nokia Siemens Networks Nokia Siemens Networks targets Maintain share in declining market Complete integration Continue to expand margins Improve operating cash flow
  125. 125. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 135 © Nokia Siemens Networks Thank you
  126. 126. © 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials136 Capital Markets Day 2008 Rick Simonson Chief Financial Officer
  127. 127. Agenda  Myth vs. Reality  Actions  Balance sheet and cash flow  Financial targets © 2008 Nokia Capital Markets Day 2008137
  128. 128. Myth vs. Reality © 2008 Nokia Capital Markets Day 2008138
  129. 129. 139 Nokia = geographically balanced Units by Geography Net Sales by Geography Gross Profit by Geography Europe 5 Middle East & AfricaAsia-Pacific Greater China Rest of Europe Latin America North America Source: Nokia Q1-Q3 2008 Europe 5 = UK, Germany, France, Spain and Italy © 2008 Nokia Capital Markets Day 2008
  130. 130. Nokia Smartphones = geographically balanced Geographical split of Nokia smartphone units Q1-Q3 2008 Source: Nokia Euro 5 = UK, Germany, France, Spain and Italy Europe 5 Middle East & AfricaAsia-Pacific Greater China Rest of EuropeLatin America North America 140 © 2008 Nokia Capital Markets Day 2008140
  131. 131. Nokia = less vulnerable to decreasing subsidies High subsidy markets – e.g. USA, UK Medium subsidy markets – e.g. Spain Low subsidy markets – e.g. Portugal, China 31% 15% Source: Nokia estimates, 2008 Low subsidy markets: limited high-end subsidies or small low-end subsidies Medium subsidy markets: significant subsidy in high-end, but typically not free with contract; limited or no pre-paid subsidies High subsidy markets: high-end device typically free with contract; subsidies also in prepaid devices 18% 17% 17% 17% 49% 36% No subsidy markets – e.g. MEA, India Total market volume Nokia volume © 2008 Nokia Capital Markets Day 2008141
  132. 132. Commodity price bubbles have burst Food = over 50% of spending in rural areas of India 0 50 100 150 200 250 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Index Oil Rice Source: Bloomberg © 2008 Nokia Capital Markets Day 2008142
  133. 133. Industry market value by price band = balanced 2008E Device Market Value by Price Band 36% 22% 41% Mid Range: EUR 75-200 Higher End: EUR 200+ Low End: EUR 0-75 Source: Nokia estimates © 2008 Nokia Capital Markets Day 2008143
  134. 134. 144 Nokia competitive advantages – Not a myth! • Scale: 39% market share YTD Q3 2008; same as next 4 players • Ability to invest in innovation: Services & Software • Brand: #5 worldwide, #1 in Asia and #1 Europe • Manufacturing and logistics: World leading position • Distribution: Substantial lead in China, India, and MEA • Cost & IPR: Significant competitive advantage Sources: Nokia estimates; Interbrand; BrandZ; AMR Research; Fairfield Resources International © 2008 Nokia Capital Markets Day 2008
  135. 135. Actions © 2008 Nokia Capital Markets Day 2008145
  136. 136. Set Costs to Reality 1) Cost of Goods Sold 2) Operating Expenses 3) Capital Expenditures Ongoing through 2009 and 2010 © 2008 Nokia Capital Markets Day 2008146
  137. 137. Nokia margin advantage Percent of operating profit Sony Ericsson NOKIA Motorola Samsung LGE Source: Nokia, company reports RIM -20% 0% 20% 40% 60% 80% Q3’06 Q4’06 Q1’07 Q2’07 Q3’07 Q4’07 Q1’08 Q2’08 Q3’08 © 2008 Nokia Capital Markets Day 2008147
  138. 138. Devices & Services COGS • Components • Warrantee • Royalty • Freight • Customs >90% COGS Breakdown: >90% Variable • Component purchasing • IPR • Warranty costs • Inventory carry costs • Design for manufacturing • In-house manufacturing Drivers of COGS Advantages Overhead Labor Variable Cost Source: Nokia © 2008 Nokia Capital Markets Day 2008148
  139. 139. Product cost advantage: two examples Cost comparison: Relative device+battery materials cost of product pairs Low end tear-down study Mid range chipset cost study Nokia solution avg. 20% lower cost Source: Nokia estimates Nokia Competitor A Competitor B ZTE/ Vodafone 125 Nokia 1200 Nokia 1661 Samsung B100 Nokia 1209 Samsung SGH-CC03 Sources: Portelligent, iSuppli and Nokia estimates Nokia solution 30 – 70% lower cost © 2008 Nokia Capital Markets Day 2008149
  140. 140. Devices & Services: COGS reduction • Commodity prices down 60% from highs • Excess production capacity in supply chain Source: Bloomberg External developments Internal actions 0 50 100 150 200 250 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Index Oil Copper • Use Nokia’s buying power to negotiate with suppliers for the best prices • Low cost design focus Example – super low end Bill of Materials down 10% with each new generation © 2008 Nokia Capital Markets Day 2008150
  141. 141. Devices & Services: OPEX cost reduction • “Plans” not “Budgets” • Announced 4th November: 700+ employees impacted • Announced 27th November: Partial exit from Japanese market • Targeted actions: • R&D • Sales & Marketing • General & Administrative • Communicate urgency throughout the organization: immediate travel restrictions, hiring freeze, curtail consultants Taking action to adjust to the new reality © 2008 Nokia Capital Markets Day 2008152
  142. 142. • Targeted actions: • Estimated CAPEX investment in 2009: • ~700 million euros (estimated ~850 million euros in 2008) • Consolidate production lines • Reduce the pacing of incremental CAPEX • Test equipment • Building improvements • IT equipment Devices & Services: CAPEX cost reduction plan Good starting point: not a CAPEX-intensive business © 2008 Nokia Capital Markets Day 2008153
  143. 143. NSN cost reduction plan Track record of delivery CoGS R&D G&A • Scale • Asset reuse • Design to cost • Global resource balancing • Supply chain optimization • Supplier and subcontractor consolidation • IT and process development • Real estate consolidation Levers for ongoing cost reduction Annual cost synergy estimate by function S&M ~ € 1.1 Bn ~ € 0.2 Bn ~ € 0.6 Bn ~ € 0.1 Bn © 2008 Nokia Capital Markets Day 2008154
  144. 144. 155 Balance sheet and Cash flow © 2008 Nokia Capital Markets Day 2008
  145. 145. Balance sheet Clean, simple, strong Q3’08 (EUR) Cash and other liquid assets 7.2B Debt 4.3B Net cash 2.9B © 2008 Nokia Capital Markets Day 2008156
  146. 146. 158 Financial targets © 2008 Nokia Capital Markets Day 2008158
  147. 147. 159 2009 Mobile device market • Global slowdown in consumer spending • Currency devaluation • Credit tightness • Channel destocking 2009 Mobile device market: Down 5% or more © 2008 Nokia Capital Markets Day 2008
  148. 148. Nokia 2009 financial targets • Nokia Devices & Services operating margin in the teens* • NAVTEQ operating margin somewhat above the Devices & Services operating margin* • Nokia Siemens Networks operating margin in the single digits* Do better relative to competitors, and minimize volatility * Non-IFRS © 2008 Nokia Capital Markets Day 2008160
  149. 149. 161 Summary • Reality – strong competitive position • We are taking action • Our capital structure is solid • Our view of the market is realistic © 2008 Nokia Capital Markets Day 2008161
  150. 150. © 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials162 Thank you.
  151. 151. Other financial targets 2008E 2009E Tax Rate* 26% 26% Capex (m EUR) ~ 850 ~ 700 Depr. and Amort. (m EUR)* ~ 900 ~ 900 Financial Income and Expense (m EUR) ~ -40 ~ -110 Common Group Functions* (m EUR expense) ~ 210 ~ 175 * Non-IFRS 163 © 2008 Nokia Capital Markets Day 2008163
  152. 152. The Device Portfolio serving the Planet Søren Petersen SVP, Nokia Devices
  153. 153. High-End Mid- Range Low-End © 2008 Nokia Capital Markets Day 2008165
  154. 154. The High-End comprises several consumer segments Style Leaders Technology Leaders Pragmatic Leaders © 2008 Nokia Capital Markets Day 2008166
  155. 155. Smartphones for everyone – in the Mid-Range Young Explorers Family Providers © 2008 Nokia Capital Markets Day 2008 167
  156. 156. The world’s strongest device portfolio covers the Planet Explore Live Connect Achieve © 2008 Nokia Capital Markets Day 2008168
  157. 157. Nokia’s systematic device portfolio approach Essential StyleBusiness Media / Internet Rational Aspirational Pricesegments(EUR) Live Premium Connect Live Entry Achieve Explore 50 100 150 200 500 © 2008 Nokia Capital Markets Day 2008169
  158. 158. There’s a parallel universe Developed World Entry Business High-End Mid- Range Low-End High-End Mid- Range Low-End Pricesegments(EUR) 50 100 150 200 500 © 2008 Nokia Capital Markets Day 2008170
  159. 159. Em erging M arket volum e dem and 2004 Productvolumes 2008 Nokia remains the leader in the Entry Business through great platforms Series 40 Series 30 © 2008 Nokia Capital Markets Day 2008171
  160. 160. Nokia remains the leader in the Entry Business Nokia 5130 XpressMusic through great solutions through great devices Nokia 1200/1208 Soldover 135.000.000units © 2008 Nokia Capital Markets Day 2008172
  161. 161. © 2008 Nokia Capital Markets Day 2008173
  162. 162. E 71 is the leading messaging solution © 2008 Nokia Capital Markets Day 2008174
  163. 163. Best Smart Phone for Professionals (PC World Latin America 2008 Awards) Phone of the year (Mobile Choice UK) Smartphone of the Year (Mobilgalan, Sweden) Editor’s choice (CNET Asia) Smartphone of the year (PC World India)
  164. 164. UI Consumer understanding HW Platforms Partnering R&D IPR Sales Global Scale Supply Chain © 2008 Nokia Capital Markets Day 2008 178
  165. 165. © 2008 Nokia Capital Markets Day 2008 179
  166. 166. Thank you.
  167. 167. Demand Supply Network Management Juha Putkiranta Senior Vice President, Demand Supply Network Management
  168. 168. Scale advantage Nokia Motorola Sony Ericsson Samsung LGE (M) 20 40 60 80 100 120 *Sources: Company reports up to 3Q 2008 2001 2002 2003 2004 2005 2006 2007 2008 Device Volumes * 140 © 2008 Nokia Capital Markets Day 2008182
  169. 169. Responding to customer needs Nokia N96 170 Handset Variants 250 Sales Package Variants © 2008 Nokia Capital Markets Day 2008183
  170. 170. Combining responsiveness and efficiency: Excellent ability to adapt Suppliers Supply OperationsEngine Operations 150 suppliers for 120 billion components 15 devices each second 24/7 200 devices in average customer order Manufacture to order © 2008 Nokia Capital Markets Day 2008184
  171. 171. Advantages in rapidly changing markets Flexible inventory management: • 75% of inventory held by suppliers immediately prior to assembly Product Sales Volume vs Plan -120% -80% -40% 0% +40% +80% +120% Flexible Manufacturing Manufacturing Flexibility: • ~20% of manufacturing done by sub-suppliers – adds flexibility • Booming Market = We managed for upside better than others • Contracting Market • We are already biased for downside • Our organization has experience • Less important = capacity/supply constraints • More important = managing costs © 2008 Nokia Capital Markets Day 2008185
  172. 172. Nokia Demand Supply Network Architecture EcosystemInnovation ResponsivenessCost effective Global reachPull driven © 2008 Nokia Capital Markets Day 2008186
  173. 173. Eco-System: Fast response for markets needs Komarom industrial village © 2008 Nokia Capital Markets Day 2008187
  174. 174. High responsiveness combined with low inventories Days of supply Order to deliveryHigh Low 1996 2008 © 2008 Nokia Capital Markets Day 2008188
  175. 175. … and extending the lead further Variation Management Global Manufacturing Scale and Efficiency Ensuring efficiency and flexibility while creating customer value Summary © 2008 Nokia Capital Markets Day 2008189
  176. 176. Superior Powers of Collaboration Jean-Francois Baril Senior Vice President Sourcing
  177. 177. Supplier Network Great Products Customer Satisfaction Operational Excellence Connecting the Inside with the Outside © 2008 Nokia Capital Markets Day 2008191
  178. 178. Operational mode Supplier portfolio   Collaboration  Percent of operating profit Sony Ericsson NOKIA Motorola Samsung LGE Source: Nokia, company reports RIM Margin advantage vs. competition -20% 0% 20% 40% 60% 80% Q3'06 Q4'06 Q1'07 Q2'07 Q307 Q4'07 Q1'08 Q2'08 Q3'08 © 2008 Nokia Capital Markets Day 2008192
  179. 179. 0 25 50 75 100 125 150 Operational flexibility R&D and supplier collaboration Terminal Vendor Shipments (M) Nokia 6300 Retailpricein€ 04 05 06 07 08 Product Sales Volume vs Plan -120% -80% -40% 0% +40% +80% +120% Gross margin % Jan 07 June 08 Operational mode = Scale and cost advantage Source: Nokia, company reports © 2008 Nokia Capital Markets Day 2008193
  180. 180. Leadership and values Investment Capability Lowest Total Cost Product Performance Time to Market Nokia #1 customer Working only with the best suppliers © 2008 Nokia Capital Markets Day 2008194
  181. 181. Balanced supplier portfolio # of Suppliers Hardware Software & Content Shares by commodity © 2008 Nokia Capital Markets Day 2008195
  182. 182. Company Confidential Sharp peak of innovative companies for picking new technologies Weight on a few large suppliers No long tail of legacy suppliers “Kiwi-bird” shaped supplier portfolio © 2008 Nokia Capital Markets Day 2008196
  183. 183. Unleashing the power of collaboration: 1+1=11 Passion and Trust Co-creation Transparency Rewards Supplier • Capabilities • Scale • Innovation Nokia • Technology planning • Product • Logistics Human and business leadership © 2008 Nokia Capital Markets Day 2008197
  184. 184. Company Confidential 2/5 Collaboration 2/5 Supplier portfolio 1/5 Robust processes ..and “a pinch” of leadership Risk management resilience © 2008 Nokia Capital Markets Day 2008198
  185. 185. Company Confidential • Supplier requirements for Ethics, Labour, Health & Safety and Environment since the 1990s • > 50 on-site supplier assessments annually with active development programs • Environmental improvement targets for key suppliers • #1 Dow Jones Sustainability Index - Communication Technology category (2008) • #1 in Greenpeace Electronics Ranking (Nov 2008) • Active participation at industry level (e.g GeSI) Responsible supplier management © 2008 Nokia Capital Markets Day 2008199
  186. 186. Thank you.
  187. 187. Nokia Smartphone Software David Rivas Vice President, S60 SW Technology Management
  188. 188. Four Pillars of Nokia Smartphone Execution
  189. 189. Integrated Experiences Consumer Insight Internal and External Software Innovation Global Presence © 2008 Nokia Capital Markets Day 2008203
  190. 190. Symbian OS In 200+ Million Smartphones Worldwide
  191. 191. Shipments Since January 2004 Source: Canalys estimates, Worldwide smart mobile devices, November 2008 Millions
  192. 192. Content and Services Anywhere, Anytime – Today
  193. 193. 3G Battery optimized Bluetooth WLAN Tactile feedback Multitasking Touch UI Sensors GPS
  194. 194. Internet video Watch TV Stream live media Chat Send group messages Share content Share media Blog Social networking Connect your home
  195. 195. Software Enables Innovation
  196. 196. Intention ActionExecution Focus on differentiating consumer experiences Reduce costs and shift focus to value add in software Bring external innovation to play Improve software offerings Extend Software business reach Cross platform programs Acquisition of Symbian Trolltech acquisition & Qt Make mobile software open Inspire open source community Create a new category of services Symbian Foundation Web runtime • • • • • • • • Defragment investment base Reduce costs associated with development current assets
  197. 197. Nokia SW Strategy Impacting the Whole Industry Open Source with Symbian Foundation
  198. 198. Improve operational set-up Further increase foundation platform attractiveness for handset vendors Create one common platform with a unified UI Short term objectives Desirable industry standard platform used by everyone Positive impact on speed, quality and innovation Wide, engaged and successful ecosystem of industry players Long term objectives
  199. 199. We have 50+ announced supporters, including the 10 Founding members. 8 Device manufacturers 7 Semiconductor vendors 9 Network operators 27 Services & SW companies Hundereds of organizations have registered their interest via the website: www.symbianfoundation.org • • • •
  200. 200. Multiple UI Styles and Capabilities UI Portfolio spans broadest range of consumers and needs S60 Non-Touch S60 Touch Maemo Touch
  201. 201. Best in class touch solution enables large volumes and growth Direct UI simplifies interaction with standard strokes and gestures
  202. 202. Integrated Services Context and Presence Smart Widgets Multiple Homescreens
  203. 203. Thank You
  204. 204. Context is here, there, now, then and in the future… Ilkka Raiskinen SVP, Context and Advertising Solutions
  205. 205. 220 People want relevance © 2008 Nokia Capital Markets Day 2008
  206. 206. 221 People need location based services © 2008 Nokia Capital Markets Day 2008
  207. 207. 222 Number Of Active Map Users HasIncreased Five Fold From 2005 to 2008 Source: Live UK panels 2005-2008 (all together 1 189 device owners) • The introduction of Nokia Maps in 2007 has pushed maps usage to 91% • 47% of panelists used map applications actively in 2008 • In 2008, Maps is the key service of S60 devices • Music and browser usage grew similarly 2 years ago HighlightsMap Application Users 0% 20% 40% 60% 80% 100% 2005 2006 2007 2008 ProportionofPanelists% Tried Twice a week 91% 24% 17% 4% 9% 10% 9% 47% © 2008 Nokia Capital Markets Day 2008
  208. 208. Nokia is the market leader in GPS devices 223 © 2008 Nokia Capital Markets Day 2008
  209. 209. Navigation…it’s not all about cars 225 © 2008 Nokia Capital Markets Day 2008
  210. 210. Location based services are more than A to B 226 © 2008 Nokia Capital Markets Day 2008
  211. 211. 227 S&S STRATEGY Bringing us all together: People, Places, Time Examples show different activities of/with different people at different times/places People People who matter to me Places A world full of interesting places Time People organize around time and place © 2008 Nokia Capital Markets Day 2008
  212. 212. How do we compare? 228 © 2008 Nokia Capital Markets Day 2008
  213. 213. Nokia Maps 3.0 Google Maps for mobile* Map data coverage 200+ countries 100+ countries Pre-loading of maps via PC / Mac yes, via Nokia Map Loader no, download only via online connection on mobile Map views 2D, 3D, Satellite, Hybrid, Terrain only 2D and Hybrid Multi point route planner yes no Walking directions yes no Real time turn-by-turn pedestrian navigation yes, Walk, in 70 countries (premium service, not free) no Real time turn-by-turn voice guided car navigation yes, Drive, in 70 countries (premium service, not free) no Share POI's, or any place from map Yes, Send via SMS, MMS, Bluetooth, Infra red no *compared with version 2.2.0.13 for Nokia S60 3rd ed. Nokia Maps 3.0 competitive landscape 230 © 2008 Nokia Capital Markets Day 2008
  214. 214. Where do we go from here? 231 © 2008 Nokia Capital Markets Day 2008
  215. 215. Costs Related to a Contextual Web • The initial cost associated with building our location based services were heavy on the front end with acquisitions – gate5, NAVTEQ, Plazes • Now that the system is in place, we need to build awareness and increase the user base. • Content – Add in Third-Party Content (Lonely Planet, Via Michelin, and Wcities) and more… • Marketing – Work closely with Device and Theme based Marketing to raise awareness. • Adding platforms. – Series 40 devices loaded with Nokia Maps started shipping this year – LG-KT610 is shipping with Ovi Maps… 232 © 2008 Nokia Capital Markets Day 2008
  216. 216. Nokia Maps promotional SMS had a79% long-term impact • The target group got a free Nokia Navigation Licence (30 days) • The short-term contribution was high: 312% increase in the number of users Source: Live 5 UK panel (2008) with 489 device owners 233 © 2008 Nokia Capital Markets Day 2008
  217. 217. 234 Better context – richer service experience: Having sushi with friends Find out who’s in town See menus, prices and availability Reserve a table Get directions on how to walk there, share place Are they free? Interested? What Japanese restaurants are in walking distance? Ratings and reviews © 2008 Nokia Capital Markets Day 2008
  218. 218. Maps on Ovi/Nokia Maps/Convert friends to use service Phone call/Reservation tool/Message Maps on Ovi/Browser Maps on Ovi/Nokia Maps Search & Maps on Ovi Messaging (several options) Friend Finder/Maps on Ovi/Nokia Maps 235 Which Nokia services enable this? Find out who’s in town Are they free? Interested? Ratings and reviews Reserve a table Get directions on how to walk there, share place What Japanese restaurants are in walking distance? See menus, prices and availability © 2008 Nokia Capital Markets Day 2008
  219. 219. Thank you.
  220. 220. 237 Nokia Messaging Initiatives Tom Furlong SVP, S&S Consumer Messaging
  221. 221. Messaging Markets and Initiatives Enterprise Consumer Emerging Direct access enterprise clients • Mail for Exchange • Lotus Traveler Consumer IM and push email service • Nokia Messaging Nokia provided email accounts • Mail on Ovi ( name@ovi.com ) © 2008 Nokia Capital Markets Day 2008238
  222. 222. Enterprise Messaging © 2008 Nokia Capital Markets Day 2008239
  223. 223. Winning device portfolio and device-led solutions • Strong Nokia device portfolio, led by Nokia Eseries range • Both Nokia and partner developed applications connecting directly to partners’ enterprise infrastructure © 2008 Nokia Capital Markets Day 2008240
  224. 224. Enterprise email available for 80 million Nokia devices • Mail for Exchange client offers freedom to mobilize email, calendar and contacts • Mail for Exchange now runs on 80 million Nokia devices (43 models) • Lotus Notes PIM access client available this year for Domino access • Customers can choose the Nokia phone they love (e.g. Nseries, music phone) and still set it up for mobile email • Largest enterprise access range of devices from any manufacturerExchange Domino © 2008 Nokia Capital Markets Day 2008241
  225. 225. Consumer Messaging © 2008 Nokia Capital Markets Day 2008242
  226. 226. Mobile Messaging Market Opportunity: 500 million accounts by 2011* ** Sources: Nokia and external analyst estimates Revenues are inclusive of net consumer spend including data fees incurred • Combined Operator Revenues of almost €5 Billion by 2011 for Mobile Email and IM** • Ad funded models planned to deliver lowest cost consumer messaging • Addressable market of circa 500 Million combined users accounts for Mobile Email and IM by 2011* Users (M) Euro (M) *Sources: Nokia and external analyst estimates Email & IM excludes Japan & Korea © 2008 Nokia Capital Markets Day 2008243
  227. 227. Investing to win November 4, 2008 Nokia acquires OZ Communications February 10, 2006 Nokia acquires Intellisync • Leading provider of white label mobile email and IM services. • Supplier to AT&T, T-mobile, Sprint, Verizon and nearly all NA operators • S40 email and consumer IM service • 5.5M active users • Advanced email solutions for prosumers • Nokia hosted solution • Push email for S60 © 2008 Nokia Capital Markets Day 2008244
  228. 228. A new Nokia service for mobile email and IM pre-loaded on Nokia Series 40 & S60 devices Your favorite devices now come with your favorite messaging services! Introducing Nokia Messaging © 2008 Nokia Capital Markets Day 2008245
  229. 229. Designed to be bundled with data plans Next generation email client Nokia Messaging: Designed to be Easy Easy to set up Easy to use Easy to afford Email address and password are all that is needed © 2008 Nokia Capital Markets Day 2008246
  230. 230. AvailabilityReachPartnerships Service is Now Live Internet Portals: Nokia Messaging Service: Mobile Operators: Accounts PushServices MobileDataService Email & IM Launching in 8 countries: Q109 30+ in 2009 Beta here now! Stay Tuned … © 2008 Nokia Capital Markets Day 2008247
  231. 231. Mobile Messaging for the Masses Global reach to establish messaging for the masses •From smartphones to feature phones for the broadest appeal •Preinstalled connection to the Nokia hosted service for a consistent Nokia experience Device Breadth, Global Reach © 2008 Nokia Capital Markets Day 2008248
  232. 232. Ovi Messaging Services © 2008 Nokia Capital Markets Day 2008249
  233. 233. Mail on Ovi: yourname@ovi.com • A free service for consumers of all Nokia phones • An integrated Ovi.com experience • Live on select S40 devices now; Web access in Q1‘09 © 2008 Nokia Capital Markets Day 2008250
  234. 234. Designed for Emerging Markets • 25% of the world has email accounts. Mail on Ovi is for the 75% without • First time internet users will be able to create and access a persistent internet identity, without a PC • OZ technology mobilizes email yet requires just 1% of a typical push email data service – providing the platform for truly affordable mail services © 2008 Nokia Capital Markets Day 2008251
  235. 235. Mobile Messaging for the Masses Leading Enterprise Solutions • Enterprise connectivity on mainstream devices • All your favorite internet messaging services in your pocket • Bringing email to the emerging market Compelling Mobile Messaging Easy Ovi Identity © 2008 Nokia Capital Markets Day 2008252
  236. 236. Thank You. © 2008 Nokia Capital Markets Day 2008253
  237. 237. NOKIA CMD 2008 December 4, 2008 Breakout Session Music and Gaming Tero Ojanperä, EVP, Entertainment & Communities Liz Schimel, VP, Global Head of Music Jaakko Kaidesoja, VP, Games Overall Highlights • Entertainment is a key focus area for Services & Software • 2008: a very productive year o Roll out of Nokia Music Stores across 3 continents  Locally relevant content, not just international hits o Launch of Comes With Music in the UK  Innovative business model to labels and compelling value proposition to consumers o Launch of new N-Gage service, new device support and dozens of games  Innovation – Reset Generation (cross-platform) and Dance Fabulous (cross- service) o Pre-installed content – revenue opportunity  N96 and Transformers/Batman  N85 and games • Coming soon o Announced in August that we are streamlining various services such as MOSH, WidSets and Download! into a single service o This will provide an easy way for consumers to get mobile media for their device o Core part of our People and Places strategy Music • Offering a total music experience – on PC, on devices and services • Nokia Music for PC o Easiest way to get music onto your Nokia and manage your music collection o Rip CDs DIRECTLY to your mobile – no other software enables that o Easy transfer by dragging and dropping albums or songs onto the picture of your device o Transfer playlists from your device to your computer – also unique o In markets that have a Nokia Music Store, access the store directly from the Store tab
  238. 238. NOKIA CMD 2008 December 4, 2008 Breakout Session Music and Gaming • Aggressive Nokia Music Store roll out o 12 markets in 13 months across 3 continents o Continue roll out during 2009 including the US and our first stores in Africa (South Africa) and South America (Brazil) o Focus on locally relevant content, not just international hits • Interesting trends from Nokia Music Store highlighting value of mobility o About 35% of visitors to our music stores are via mobile o About a third of downloads are happening over the air, either via 3G or wifi • Comes With Music o Very simple proposition – buy a Nokia Comes With Music device and get a year’s worth of unlimited access to the Nokia Music Store. Keep all of the music you download o Strong support from the industry – all major labels on board as well as indies and music publishers  Offer 100 percent chart coverage in the UK at sales start o Nokia 5310 XpressMusic and Nokia N95 8GB now on sale – compelling price points (GBP 129.99 and free on a GBP35/month contract)  18-month contract option to support operators (e.g. 3UK) o Expanding device support with additional devices in 2009 – major focus on Nokia 5800 XpressMusic o Roll out in 2009 across markets with existing Nokia Music Store o Nokia makes money both from traditional device margins, as well as margins on the Comes With Music service  Positive business for all players – Nokia, labels, rightsholders Games • N-Gage higlights o Live in April and regularly introducing more and more N-Gage-compatible devices to the market (already Nokia N79, N81, N82, N85, N95, N96, Nokia 5320 XpressMusic) o Pre-loaded games. For example, Nokia N85 comes with at least 10 games in box o Co-operation with Vodafone with Nokia N85 bundled with a customized version of the N-Gage application with the Star Wars: The Force Unleashed game embedded as well as exclusive mobile content o Co-operation with Rogers (Canada) around N-Gage • Trends from the first six months: o Sales transactions in over 130 countries o Repeat purchase rate is over 35% globally o Operator billing is dominant with over 80% of people using it in countries where available
  239. 239. NOKIA CMD 2008 December 4, 2008 Breakout Session Music and Gaming • Other milestones o Chinese language N-Gage application and the ability to pay with QQCoin (the leading virtual currency in China) later this year o 1Q 2009 – 15 to 20k retail purchase points in India and well as operator billing in Latin America and a localized service and operator billing in Russia • New titles on a regular basis with a mix of genres o Play and compete with others: ONE and Dirk Dagger o Interact and communicate with others: Reset Generation and Yamake o Casual gamers: Bounce and Hooked On: Creatures of the Deep o Big brands: EA Sports, Gameloft, etc. • Game innovation o Cross-platform games - web-to-web, web-to-PC/console and web-to-mobile  Reset Generation available to play for free on PC (Windows/Mac/Linux) as an embedded web widget and as downloadable content with all N-Gage compatible devices. o Games across Nokia service offerings  Dance Fabulous dance and music game. Create unique choreographies to the music stored on your device, including a link to the Nokia Music Store  Expect to see more integration of services in N-Gage games – for example using Nokia Maps and GPS • N-Gage Arena o the place where the N-Gage community goes to meet friends and find others to play with o Online multiplayer gaming is at the core of the N-Gage experience o All titles support a common minimum community feature set, but more multiplayer games and more community features coming o Nokia has the leading, tried and tested solution for creating the best online multiplayer mobile games Summary • Music and Gaming focus for 2009 o Rolling out NMS/CWM in key markets o Expanding N-Gage portfolio in terms of games and devices • Nokia strengths o Tight integration between experience and device o Innovative business models that bring value to all o Device volumes
  240. 240. Dr. Henry Tirri, PhD SVP & Head of Nokia Research Nokia Research Sharpening Innovation to Build the Future
  241. 241. Rich Context Modeling Meet the needs of individuals on their terms. New User Interface Interact joyfully and intuitively through technology. Cognitive Radio Liberate spectrum to expand markets and enable large-scale sensing. High Performance Mobile Platforms Superior mobile platform improving performance and power ratio. Rich Context Modeling New User Interface Cognitive Radio High Performance Mobile Platforms Four Research Focus Areas for NRC In Order to Bridge the Now to the Next © 2008 Nokia Capital Markets Day 2008255
  242. 242. • Three years of actively exploring open innovation • Selective deep collaborations with world-leading institutions • China – Beijing • Finland – Helsinki & Tampere • Switzerland – Lausanne • UK – Cambridge • USA – Cambridge, MA & Palo Alto, CA • The industry compels a “Demo or Die” philosophy • Building global test beds to learn from larger and wider audiences Open Innovation at Nokia Engaging the World’s Premiere Institutions © 2008 Nokia Capital Markets Day 2008256
  243. 243. • Near Field Communication • Indoor positioning • Environmental analysis • GPS • Cameras • Accelerometers • Light sensors • Bluetooth • Microphones • Wi-Fi • Cell triangulation Fusing the Physical & Digital Worlds Mobile Devices Sense Your Environment Today… Incoming… © 2008 Nokia Capital Markets Day 2008257
  244. 244. Liberate data from application silos based on user behavior New User Experiences Lenses Top-down is a valuable interaction model Content streamsFilmstrip views of data People as the set point (shake & wake address book) Dynamic tiles © 2008 Nokia Capital Markets Day 2008258
  245. 245. Wild Possibilities in a Sensor-Filled World • Tracking of influenza outbreaks through personal health monitoring in populations • Real-time weather monitoring across 100’s of millions of users • Citizen journalism during major events, such as when earthquakes strike • Up to the second crowd flows in busy locations like stadiums © 2008 Nokia Capital Markets Day 2008259
  246. 246. A Vision of the Deep Future Morph • Result of an invitation from MoMA • Product of nanoscience work between NRC and Univ. of Cambridge, UK • A highly personal device based upon sensors, services, customizability – All real work going on in our labs • Captured the imagination of millions – Millions of views on YouTube • Demonstrated the public hunger for daring visions © 2008 Nokia Capital Markets Day 2008260
  247. 247. Nokia in North America Mark Louison President Nokia Inc.
  248. 248. Discussion Points • North American Market Context • Update on Nokia’s NAM Focus Areas –Expand Portfolio –Invest in Key Technologies –Deliver Compelling Solutions –Create a Winning Workforce –Building a Leading Brand in NAM • Summary • Q&A © 2008 Nokia Capital Markets Day 2008
  249. 249. North America Market Context 264 © 2008 Nokia Capital Markets Day 2008
  250. 250. Growth Opportunities • Q3 08 Population (338 million) is 85% penetrated • Q1-Q3 2008 YOY industry unit growth: approx 9% through Q3 – Take market share by offering customized portfolio by operator – Continue to expand CDMA portfolio – Targeted growth tactics: – Realize mobile Internet vision – Growth in converged/qwerty messaging devices – Capture large share of prepaid/entry – Position Nokia firmly in replacement sales © 2008 Nokia Capital Markets Day 2008
  251. 251. North America Focus Areas Leverage Brand Leadership Invest in Key Technologies Deliver Compelling Solutions Expand Our Portfolio Winning Workforce © 2008 Nokia Capital Markets Day 2008
  252. 252. Expand Portfolio © 2008 Nokia Capital Markets Day 2008267
  253. 253. Growing US Carrier Portfolio Nokia 6205 (Verizon) Nokia 6555 (AT&T) Nokia 2600 (AT&T) Nokia 6650 (AT&T) Nokia 6205 Dark Knight (Verizon) Nokia 2228 Nokia 1508 Nokia 1606 (AWS) Nokia 6301 (T-Mobile) Nokia N810 WiMax Edition Nokia 5610 (T-Mobile) Nokia 5310 (T-Mobile) Nokia 6263 (T-Mobile) Nokia 2605 (Verizon) Nokia 3555 (T-Mobile) © 2008 Nokia Capital Markets Day 2008
  254. 254. Growing US Retail & Online Portfolio N96 N95 8GB N73 N810 N78N95 N82 N81 Nokia E51 5310 6300 2760 2630 Nokia E71 © 2008 Nokia Capital Markets Day 2008
  255. 255. Canada Portfolio N95 8GB 5310 5310 3555 6086 2680 2760 6555 3500 3500 6301 Rogers Fido MVNOs E71 1208 Petro-Canada 7-Eleven Cityfone 5310 Primus 3555 Petro-Canda Cityfone 2630 Videotron Petro-Canada 5200 7-Eleven 1608 7-Eleven 2760 Petro-Canada Cityfone Primus Videotron MVNOs © 2008 Nokia Capital Markets Day 2008
  256. 256. Invest in Key Technologies 271 © 2008 Nokia Capital Markets Day 2008
  257. 257. Deliver Compelling Solutions 272 © 2008 Nokia Capital Markets Day 2008
  258. 258. Create a Winning Workforce© 2008 Nokia Capital Markets Day 2008273 © 2008 Nokia Capital Markets Day 2008
  259. 259. Building a Leading Brand 274 © 2008 Nokia Capital Markets Day 2008
  260. 260. Print Early Stage Work Has Begun © 2008 Nokia Capital Markets Day 2008
  261. 261. Summary
  262. 262. Regional Mobile Device Update India Africa China Colin Giles Senior Vice President Distribution East
  263. 263. India © 2008 Nokia Capital Markets Day 2008278
  264. 264. Nokia is the largest Multinational in India • Investing in and growing the market • Taking mobility to the masses • Providing Universal Access • Generating employment • Manufacturing – Nokia SEZ (Special Economic Zone) • Infrastructure – Nokia Siemens Networks • R&D • Branded retail – Nokia priority dealers • Mobile devices, enhancements & services Rajasthan Gujarat Jammu& Kashmir Uttar Pradesh Bihar Orrisa Madhya Pradesh Maharashtra Andhra Pradesh Karnataka West Bengal Assam Uttaranchal Tamil Nadu Kerala Diu © 2008 Nokia Capital Markets Day 2008279
  265. 265. Monthly Subscriber Additions 6 7 7 7 7 8 8 2 2 2 2 2 2 2 8 9 9 9 9 10 10 0 2 4 6 8 10 12 Apr.08 M ay.08 Jun.08 Jul.08 Aug.08 Sep.08 Oct.08 Millions GSM CDMA Total Indian Telecom Market * Based on National Council of Applied Economic Research (NCAER), Govt of India definition of middle class etc. Numbers refer to household incomes per month 6 national operators (4 in GSM and 2 in CDMA) Income Level Income per month* Subscriber base Lower income Up to USD 350 138 mn Middle income USD 350 – 1735 141 mn Upper income Above USD 1735 21 mn Total 300 mn © 2008 Nokia Capital Markets Day 2008280
  266. 266. • Rural is likely to account for over 50% of new subscribers • Services still nascent but picking up • 3G Roll-out • Increasing competition in the operator space • Declining Device ASPs Estimated 500 million mobile subscribers in India by 2010 Trends in Telecom Industry Source: Nokia © 2008 Nokia Capital Markets Day 2008281
  267. 267. Nokia India: Strong position • Nokia is India’s most trusted brand • Nokia’s brand preference continues to be strong at 77% • Largest distribution network amongst device vendors – 162 000 retailers nation wide • Pioneering India specific services business models Sources: Economic Times, Nokia © 2008 Nokia Capital Markets Day 2008282
  268. 268. Africa © 2008 Nokia Capital Markets Day 2008283
  269. 269. 284 Region with many faces New African consumers Emerging markets Developed markets 284 Dimensions • More than 900 million people • One quarter of the world’s nations • One fifth of the planet’s land mass Ethnic diversity • More than 1 000 ethnic groups Economic Diversity • GDP per capita (purchasing power parity) varies between USD 470 and USD 12 000 Linguistic diversity • More than 1 000 languages Nokia has Unrivalled distribution © 2008 Nokia Capital Markets Day 2008 Source: IMF, World Bank, CIA Fact Book, Nokia
  270. 270. 285 “My First Nokia” roadshow reaching the masses The consumer is hungry for information as demonstrated by the amazing response that took all of us by surprise yesterday. Just how magical can it get? © 2008 Nokia Capital Markets Day 2008
  271. 271. 286 Significant growth expected • Mobile often the only choice of telephony • Mobile likely to be first internet experience • Penetration relatively low (~18%) • Replacement market emerging • Socio-economic benefits of mobile technology • Mobile to become the banking platform for the ‘unbanked’ Source: Nokia © 2008 Nokia Capital Markets Day 2008
  272. 272. China © 2008 Nokia Capital Markets Day 2008287
  273. 273. Mobile device market growth in 1Q-3Q 2008 strong in China Source: Nokia • Most populous nation in the world 1.36 billion inhabitants (2008) • Mobile penetration 48% (Q3 2008) • World’s largest mobile phone market 172 million devices (2007) • Most internet users in the world 253 million users in June 2008 • Largest multimedia market in the world – largest market for Nokia N-Series devices 288 0 5 10 15 20 25 30 35 40 45 50 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 Quarterly Greater China market volume (M units) +16%1H07 – 1H08 3Q07 – 3Q08 +13% © 2008 Nokia Capital Markets Day 2008
  274. 274. A Strong Footprint in China • One of the biggest Foreign Invested Companies in China • Leader in Corporate Responsibility and Environmental initiatives 289 • 2 Manufacturing Sites • 10 R&D Sites • 12 000 Employees • Nokia’s largest market with 13% of Global Sales Volume © 2008 Nokia Capital Markets Day 2008
  275. 275. Nokia with strong sales growth in China Source: Nokia • Nokia had 16% volume growth YoY 1Q- 3Q08 • Growth driven by strong market growth and maintained leading market share • Nokia has built undisputed lead in Chinese market with strong coverage across all price bands 0 1 2 3 4 5 6 7 2003 2004 2005 2006 2007 1-3Q08 Nokia sales in China 2003 – 3Q08 (B EUR) CAGR 30% 290 © 2008 Nokia Capital Markets Day 2008
  276. 276. Nokia remains committed to capturing rural growth in China • Rural market growing significantly faster than total market • Rural market penetration in 2007 22% vs. 62% in urban – still significant potential remains • Nokia committed to driving sustainable sales in rural areas Source: Sino-MR, CCID, BDA survey and interviews Rural vs. Urban market volume (CAGR) +24% +38% Units (M) Market growth Urban Rural 291 © 2008 Nokia Capital Markets Day 2008
  277. 277. Nokia the leader in smartphone sales in China Estimated Quarterly Smartphone sales and Nokia share • Nokia the leader in smartphone segment in China • Nokia’s average market share over last 7 quarters was 65% • Currently China is the largest market for Nokia N-Series devices in the world • Nokia is poised to take advantage of service opportunity through large base of advanced devices Source: Canalys (M units) 292 © 2008 Nokia Capital Markets Day 2008 Nokia Others vendors
  278. 278. Operator restructuring will have positive effects for Chinese consumers and the mobile industry • Increased competition and value to Chinese consumers • Effective roll out of 3G • Drive opportunities to jointly develop service opportunities in the marketplace with operators • Nokia will continue to develop our strategic relationships with all Chinese operators in the future Three strong mobile operators emerging in China New China Telecom New China Unicom New China Mobile GSM/ TD- SCDMA GSM/ WCDMA CDMA/ CDMA2000 CDMA GSMPending – Satellite Telecom 293 © 2008 Nokia Capital Markets Day 2008
  279. 279. Nokia’s leadership in Distribution and Brand Data Source: Synovate Nokia brand preference among Chinese consumers • Nokia leading in brand and distribution • Nokia brand preference (46%) over double that of competitors • Leading vendor retail network of 130 Nokia branded retail stores and 2 flagship stores • Leading resources of sales reps and promoters • Over 1 300 permanent sales reps • Over 4 000 permanent promoters ramping up to 20 000 in peak seasons 294 Nokia Motorola Samsung Domestic Ericsson Sony Ericsson LGE 0 10 5 15 20 25 30 35 40 45 50 Q1’06 Q2’06 Q3’06 Q4’06 Q1’07 Q2’07 Q3’07 Q4’07 Q1’08 Q2’08 34 33 36 37 42 41 47 46 43 45 % © 2008 Nokia Capital Markets Day 2008
  280. 280. Conclusions © 2008 Nokia Capital Markets Day 2008295
  281. 281. Opportunity for Growth Still Continues • Connecting the next Billion… • Distribution Development builds barriers • Nokia Life-Tools adds extra value • Constantly rejuvenating the portfolio with more features and lower prices points 296 Population, millions Urbanization Mobile Penetration Africa 758 35% 31% India 1110 28% 22% China 1361 45% 48% © 2008 Nokia Capital Markets Day 2008
  282. 282. Thank You.
  283. 283. Company Confidential © 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials298 NAVTEQ Overview Judson Green President & CEO, NAVTEQ
  284. 284. EnterpriseEnterprise Mobile DevicesMobile Devices In-Dash VehicleIn-Dash Vehicle Internet & LBSInternet & LBS Global Leadership in Digital Mapping • Leading parcel and overnight delivery companies • Federal agencies, including GIA and FEMA • Enterprise software solutions using geospatial data, including Oracle and ESRI • Significant share of European portable navigation business and leading map data supplier in North America • Nearly 50 million Portable Navigation Devices (PND) and smartphones in EU and NA have been enabled with NAVTEQ maps since 2001 • Tens of billions of mapping transactions annually using NAVTEQ maps • Internet focus rapidly evolving to local search services • NAVTEQ maps enable all Verizon Wireless LBS in the U.S. • Virtually every car manufacturer and system vendor in Europe and North America uses NAVTEQ in one or more of its products • Nearly 20 million in-dash systems in EU and NA have been enabled with NAVTEQ maps since 1999 • First advanced driver assistance systems use NAVTEQ maps © 2008 Nokia Capital Markets Day 2008299
  285. 285. Enterprise Strong Customer Relationships Automotive OEMs System Vendors Telematics Internet & LBS MobileMobile DevicesDevices © 2008 Nokia Capital Markets Day 2008300
  286. 286. Product Superiority = Accuracy + Richness + Breadth Three Principal Products • Road network data with rich attribution required for navigation applications • Real-time, historical and predictive data products and services that bring traffic information to navigation experiences • Rich information about places on the map, including: • Points of Interest • Pedestrian content • Venue-specific maps & content • Dynamic content e.g., fuel prices, event info, and parking availability © 2008 Nokia Capital Markets Day 2008301
  287. 287. Field Driven Data Capture & Verification • More than 1 000 geographic analysts in more than 180 offices around the world • Drive millions of miles annually • Collect more than 260 attributes per road segment • Use patented tools, technology and proprietary processes, as well as multi-view camera systems • Capture and verify road network and location-based content – exactly as a driver or consumer would experience it © 2008 Nokia Capital Markets Day 2008302
  288. 288. Superior Detail and Richness Turn RestrictionsTurn Restrictions One-WaysOne-Ways Access RestrictionsAccess Restrictions Underground ExitsUnderground Exits Physical BarriersPhysical Barriers Complex ManeuversComplex Maneuvers Speed LimitsSpeed Limits Points of Interest (Points of Interest (POIsPOIs)) © 2008 Nokia Capital Markets Day 2008303
  289. 289. 305 Innovative New Content and Features Navigable Content Display Content Enabling Content Pedestrian Content Informational Content Traffic & Dynamic Content HOV Lanes Speed LimitsExtended Lane Toll Guidance Scenic Routes Speed Zones Satellite Imagery 3-D Landmarks Digital TerrainJunction Views 2D Building Foot Prints 3D City Models Lane CurvaturePrecise Road Geometry Road Slope Neighborhood Boundaries Travel GuidesMass Transit LinesPedestrian Paths Trucking Telecommunications Voice PhonemesPoints of Interest Attribute Flags Real Time Traffic NAVTEQ Traffic™ Real Time NAVTEQ Traffic Flow Patterns Fuel Prices • Event listings • Movie times • Parking © 2008 Nokia Capital Markets Day 2008
  290. 290. 306 • Volume growth moderating • Lower ASPs dampening revenue growth • Customers demanding new content to differentiate • Focus increasing on advertising- driven models Industry Trends • Car sales declining • Mix shifting to lower priced models • Penetration continuing to increase • Low-cost in-dash navigation becoming available • Advanced Driver Assistance Systems representing a longer-term opportunity • Smartphone business becoming more significant • Wireless operators increasing focus on mobile applications • Internet portals focusing on mobile LBS opportunity Automotive Wireless Portable Navigation Device General © 2008 Nokia Capital Markets Day 2008
  291. 291. 307 Acquisition Update • Transaction closed July 10, 2008 • NAVTEQ operated as an independent unit • New governance procedures and Board of Directors established • Operating synergies realized © 2008 Nokia Capital Markets Day 2008
  292. 292. 308 NAVTEQ’s Role In Support of Nokia • Principal source of: – digital maps and POIs – pedestrian maps, local content & transit information – traffic information & other dynamic content – visual content • Location services server platform components • Location content referencing system • Location-based advertising fulfillment engine • Map sensor data processing Content Technology © 2008 Nokia Capital Markets Day 2008
  293. 293. Examples of Nokia/NAVTEQ Collaboration Map sensor data Content & coverage roadmaps Community input © 2008 Nokia Capital Markets Day 2008309
  294. 294. NAVTEQ’s Future Direction • Development of innovative new content & capabilities • Rapid expansion to new geographies • Focus on high quality products and services • Essential services & support for all customers © 2008 Nokia Capital Markets Day 2008310
  295. 295. Company Confidential © 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials311 Thank you.
  296. 296. 312 © Nokia Siemens Networks R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: Nokia Siemens Networks Competing in a challenging business environment Mika Vehviläinen Chief Operating Officer
  297. 297. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 313 © Nokia Siemens Networks In a nutshell • Walking the talk • Service providers’ challenges – our approach • Transforming development • Customer experience & network efficiency • Good green business sense • Strong portfolio and market-leading innovations
  298. 298. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 314 © Nokia Siemens Networks Walking the talk “We are extremely pleased with Nokia Siemens Networks…as our preferred partner in creating the largest and most advanced networks in the world.” Dr. Marwan Al-Ahmadi, CEO, Zain Saudi Arabia • Software sales have been developing well • Good progress in solutions • Portfolio strengthening • Increasing R&D efficiency continued Source: Nokia Siemens Networks
  299. 299. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 315 © Nokia Siemens Networks Service providers’ challenges – our opportunities Extreme traffic growth Improve efficiency and quality Enriching customer experience Making a net positive impact Changing business environment
  300. 300. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 316 © Nokia Siemens Networks Our approach in realizing opportunities • Transforming development • Differentiating in focus areas • Ensuring good green business sense • Offering a strong portfolio and market-leading innovations
  301. 301. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 317 © Nokia Siemens Networks Transforming development From the traditional way… • Waterfall model • “One size fits all” • Specific design • High cost development • Local infrastructure …to the new way • Agile model • Customer value focused • Asset reuse • Global resource balancing • Shared infrastructure
  302. 302. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 318 © Nokia Siemens Networks Build for leadership in network efficiency and enriched customer experience Connectivity Content and end-user applications Service management and charging Network efficiency Enriched customer experience
  303. 303. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 319 © Nokia Siemens Networks Source: Nokia Siemens Networks Network efficiency solutions to provide connectivity at lowest cost “…Nokia Siemens Networks offered exactly what we need to overcome the bottleneck in our data network.” Rico Chemnitz, Head of Core Network, 3 Austria Our offering to service providers • Network simplification & automation • Modernization • Energy efficiency We differentiate through • Clear leadership in energy efficiency • Driving role in network simplification • Track record in bringing costs down
  304. 304. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 320 © Nokia Siemens Networks Source: Nokia Siemens Networks Enriching customer experience for increased (life-time) value Through customer insights and experience management • Subscriber Data Management • Next Gen Service Assurance & OSS • Unified charging We differentiate through • Unique knowledge of experience drivers • Compelling portfolio and know-how • Excelling in solution delivery “With Traffica, we solve 98% of the problems during the 1st call.” Vesa Suomalainen, Head of the Customer Care department, Elisa
  305. 305. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 321 © Nokia Siemens Networks ICT can help to save nearly €600 billion in 2020, i.e. 7.8 billion tons CO2 Making a net positive impact to the business and environment and more Reducing power consumption by up to 70% Use of renewable energy sources Over 90% of Flexi BTS recyclable Source: GeSI
  306. 306. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 322 © Nokia Siemens Networks Source: Nokia Siemens Networks Strong portfolio and market-leading innovations • Largest WCDMA/HSPA footprint worldwide • Converged Core has shown strong growth • Next Gen Service Assurance broke the 100 customers mark • Driving optical innovation “… 250,000 people around the Bird’s Nest at the opening ceremony, there was not a single problem with the NSN network.” General Manager, Beijing Mobile Communication Corporation
  307. 307. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 323 © Nokia Siemens Networks Way forward Show thought leadership Become a solutioneer Excel in R&D productivity Living up to our green ambitions
  308. 308. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 324 © Nokia Siemens Networks Thank you
  309. 309. 325 © Nokia Siemens Networks R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: Nokia Siemens Networks Leading transformation partner for Communications Service Providers Rajeev Suri Head of Services
  310. 310. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 326 © Nokia Siemens Networks Achievement & opportunities Our approach Way forward
  311. 311. 327 © Nokia Siemens Networks R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: Services growth momentum in place West-South Europe • Leading-edge wireless railway communications in Spain • Consultancy and hosting at Blyk • Service improvement at O2 Czech • Hosted MVNO, Conad Italy Latin America • 3G at TIM Brasil • 24h network planning for LAT operator through remote delivery MEA • $150m turnkey and network operations for Zain, Saudi-Arabia • Remote radio frequency optimization for a service provider in Iran • World’s first commercial mobile-TV based on DVB-H for Qatar North East • Customer Care support, Elisa Finland • 3G arrives in Uzbekistan with NSN ServicesNorth America • Outsourcing for Embarq • Remote BSC software upgrade for US service provider from GNSC, Chennai, India Greater China • Improving China Mobile’s end-user experience • Optimization at China Guangdong Mobile • Network security entry in China APAC • Turnkey contract with Hutchison Indonesia • Managed Services activity in India • DVB-H for Global Mediacom, Indonesia • Location based services deployed at Telkomsel 2008: A strong year* • Revenue growth • Improving profitability • Sustained market share *cumulative up to Q3.08
  312. 312. 328 © Nokia Siemens Networks R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: Global Delivery Center- Service specific delivery Local project organization - Project specific activities and customer interface Global Network Solution Center (GNSC) – Integrated Managed Service Global Care Center (GCC) CSI Service Delivery Centers (SDC) Service performance - right balance of local proximity, global scale and cost efficiency
  313. 313. 329 © Nokia Siemens Networks R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: Success in operational improvement •Transformation through global delivery strategy •Efficiency gain programs • Supplier management • Utilization improvement • Standardization and automation Deal discipline, focus on margin and eye on cash generation
  314. 314. 330 © Nokia Siemens Networks R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: Our assets to address the opportunities > 20,000 service professionals across 150 countries* Global delivery model Our installed base Portfolio in the growth segments Solution capabilities Innovation * as of Q3.08
  315. 315. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 331 © Nokia Siemens Networks Achievement & Opportunities Our approach Way forwardAchievement & opportunities
  316. 316. 332 © Nokia Siemens Networks R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours:
  317. 317. 333 © Nokia Siemens Networks R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: Nokia Siemens Networks Proposition Services partnership for Network Efficiency Network Design Network Build Network Care Products & Services Business Support Transformed operator Traditional operator Global Service Delivery Model Processes and Automation Service Offerings Network Optimization and Upgrade Network Operation Customer Interaction Services partnership for enriched customer experience Driving network efficiency & enriched customer experience
  318. 318. 334 © Nokia Siemens Networks R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: Transformation requires Solutions Source: Nokia Siemens Networks Customer focus Network infrastructure focus Industrialized procurement RFQs and E-auctions Offers easily compared Prices easily compared Global / Corporate decisions Consultative co-development Market specific solutions Prices hard to compare Local / OpCo decisions “The solution and services from Nokia Siemens Networks mean that we are able to focus fully on promoting new, value- added services to our customers.” Jan Blom, Director of Business Market and Sales, 3 Sweden
  319. 319. 335 © Nokia Siemens Networks R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: The NSN way of providing solutions Defining a core strategy Identifying/optimizing the use of strategic resources Implementing an optimal value network Achieving intimacy in the customer interface End-user applications Customised solutions for service delivery Integrated Provisioning Solution Service Management Outsourcing and Hosted Services Consulting Service – Business, Processes Convergent Charging and Care Differentiate by monitoring, analyzing, managing, charging and bundling services in real time
  320. 320. 336 © Nokia Siemens Networks R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: Solution example from a service provider from network efficiency to enriched customer experience Service Provider Challenge How can their customers would be treated as “virtual” local customers by the networks they visit across 20 countries in terms of pricing, while retaining their home network service functionality. New top-up (electronic) Enhanced distribution of e- top-up Signaling opt Efficiency Sponsored calls Mobile PBX/ Centrex Retention Multi-vendor network roll-out across 20 countries For Business Cost Tracker Differentiation GPRS Roaming MMS Browsing (flat fee) Push Email (flat fee) Device Management For Consumers Service Provider Challenge How can their customers be treated as “virtual” local customers by the networks they visit across 22 countries in terms of pricing, while retaining their home network service functionality? With NSN Solutions customers can now • Place calls at local rates while roaming • Receive incoming calls for free • Local top-up for pre-paid • Have access to home network services
  321. 321. R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: 337 © Nokia Siemens Networks Achievement & opportunities Our approach Way forward
  322. 322. 338 © Nokia Siemens Networks R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: Excellence in operational efficiency Creating value for the company Global Service Delivery Model Processes and automation ProcessesShared delivery concept Standardization & automation • Functional Org. Model • Process FW
  323. 323. 339 © Nokia Siemens Networks R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: Future-proof innovations Creating value for customers Business model Solution Process Innovation in Aim Innovation leadership Business transformation Profitability ACME partnership for improving networks’ environmental performance Innovative site designs (Aluminum feeder cables, Lattice Tubular Towers) Prosper Platform – innovation in care delivery processes; enhancing network quality & efficiency
  324. 324. 340 © Nokia Siemens Networks R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: Our priorities going forward Continue focus on improving profitability & market share Enhance solution capabilities Efficiency in global delivery Continue embracing innovation
  325. 325. 341 © Nokia Siemens Networks R 255 G 211 B 8 R 255 G 175 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 137 G 146 B 155 R 175 G 0 B 51 R 52 G 195 B 51 R 0 G 0 B 0 R 255 G 255 B 255 Primary colours: Supporting colours: Thank you

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