17 July 2008

Nokia's Market Share Gains
Nokia Q2 2008 net sales EUR 13.2 billion

Based on our preliminary market estimate for the second quarter 2008, Nokia's market share gains and strong profitability drive EPS growth! Nokia Q2 2008 net sales EUR 13.2 billion, EPS EUR 0.36 excl. special items

"Nokia delivered increased device market share and strong underlying profitability in the quarter.

Looking at the rest of the year, we are optimistic and have had good feedback about the broad range of new products we expect to sell in our device business.

In the second quarter we saw good momentum in the early stages of our services and software business, and we believe that the next wave of growth will be driven by devices linked with services.

On the infrastructure side, Nokia Siemens Networks delivered a second quarter with good net sales growth and improved profitability." Olli-Pekka Kallasvuo, Nokia CEO

SECOND QUARTER 2008 HIGHLIGHTS

• Nokia net sales of EUR 13.2 billion, up 4% year on year and up 4% sequentially (up 11% and 7% at constant currency).
• Devices & Services net sales of EUR 9.1 billion, down 1% year on year and down 2% sequentially (up 6% and 1% at constant currency).
• Nokia Siemens Networks net sales of EUR 4.1 billion, up 18% year on year and up 20% sequentially (up 26% and 23% at constant currency).
• Services and software net sales of EUR 119 million, up 42% sequentially.
• Nokia diluted EPS of EUR 0.36, up 13% year on year, excluding special items.
• Nokia operating margin of 14.7%, up from 11.1% in Q2 2007 and flat sequentially, excluding special items.
• Devices & Services operating margin of 20.1%, up from 19.4% in Q2 2007 and down sequentially from 21.2%, excluding special items.
• Nokia Siemens Networks operating margin of 3.8%, excluding special items, and 6.7%, excluding special items and purchase price accounting related items arising from the formation of Nokia Siemens Networks.
• Nokia operating cash flow of EUR 1.5 billion.
• Estimated industry mobile device volumes of 303 million units, up 15% year on year and up 3% sequentially.
• Nokia mobile device volumes of 122 million units, up 21% year on year and up 6% sequentially.
• Nokia estimated mobile device market share of 40%, up from 38% in Q2 2007 and up from 39% sequentially.
• Nokia mobile device ASP of EUR 74, down sequentially from