Nokia Corporation Interim Report for Q 05 and January-June 05

Nokia Corporation

Interim Report

July 30, 2015 at 08:00 (CET +1)

Nokia Corporation Interim Report for Q2 2015 and January-June 2015

Strong Q2 positions Nokia well to meet full year 2015 objectives

This is a summary of the Nokia Corporation interim report for second quarter 2015 and January-June 2015 published today. The complete interim report for second quarter 2015 and January-June 2015 with tables is available at http://company.nokia.com/en/financials. Investors should not rely on summaries of our interim reports only, but should review the complete interim reports with tables.

FINANCIAL HIGHLIGHTS

Net sales in Q2 2015 of EUR 3.2 billion (EUR 2.9 billion in Q2 2014), up 9% year-on-year (down 1% year-on-year on a constant currency basis)

Non-IFRS diluted EPS in Q2 2015 of EUR 0.09 (EUR 0.06 in Q2 2014), an increase of 50% year-on-year; reported diluted EPS in Q2 2015 of EUR 0.09 (loss of EUR 0.01 in Q2 2014)

Nokia Networks

6% year-on-year net sales growth (4% year-on-year decline on a constant currency basis)

12% year-on-year growth in non-IFRS gross profit, with non-IFRS gross margin increasing to 40.0% from 38.1%, primarily driven by an elevated level of software sales within Mobile Broadband and strong performance across Global Services

11% year-on-year growth in non-IFRS operating profit, with non-IFRS operating margin increasing to 11.5% from 11.0%, supported by continued focus on operational excellence

HERE

25% year-on-year growth in net sales, with 24% growth in new vehicle licenses for embedded navigation systems

Non-IFRS operating profit of EUR 27 million, with non-IFRS operating margin increasing year-on-year to 9.3% from 0.0%

Nokia Technologies

31% year-on-year growth in net sales and 17% year-on-year growth in non-IFRS operating profit, primarily due to higher intellectual property licensing income from existing and new licensees and non-recurring net sales. In addition, on a year-on-year basis, non-IFRS operating profit was negatively affected by higher non-IFRS operating expenses

Group Common Functions

Non-IFRS operating profit of EUR 69 million benefitted from a gain of approximately EUR 110 million related to Nokias investments made through its venture funds

Reported second quarter 2015 results1 Reported January-June 2015 results1

EUR million Q215 Q214 YoY change Q115 QoQ change Q1-Q215 Q1-Q214 YoY change

Net sales - constant currency (1)% (1)% 5%

Net sales 3 209 2 942 9% 3 196 0% 6 405 5 606 14%

Nokia Networks 2 730 2 566 6% 2 673 2% 5 403 4 894 10%

HERE 290 232 25% 261 11% 551 441 25%

Nokia Technologies 193 147 31% 266 (27)% 459 278 65%

Gross margin % (non-IFRS) 46.7% 44.0% 270bps 42.5% 420bps 44.6% 44.8% (20)bps

Operating profit (non-IFRS) 521 346 51% 265 97% 786 651 21%

Nokia Networks 313 281 11% 85 268% 398 497 (20)%

HERE 27 0 19 42% 46 10 360%

Nokia Technologies 112 96 17% 193 (42)% 305 182 68%

Group Common Functions 69 (31) (32) 37 (39)

Operating margin % (non-IFRS) 16.2% 11.8% 440bps 8.3% 790bps 12.3% 11.6% 70bps

Profit (non-IFRS) 357 215 66% 200 79% 556 386 44%

Profit 352 (27) 181 94% 533 84 535%

EPS, EUR diluted (non-IFRS) 0.09 0.06 50% 0.05 80% 0.15 0.10 50%

EPS, EUR diluted 0.09 (0.01) 0.05 80% 0.14 0.02 600%

1 Results are as reported unless otherwise specified. The results information in this report is unaudited. Please see Notes to financial statements - Basis of preparation for more information. Non-IFRS results exclude transaction and other related costs resulting from the sale of substantially all of Nokias Devices & Services business to Microsoft (the Sale of the D&S Business), goodwill impairment charges, intangible asset amortization and purchase price related items, restructuring related costs, and certain other items that may not be indicative of Nokias underlying business performance. For a detailed discussion, please see the year to date discussion and the non-IFRS to reported reconciliation note to the financial statements. A reconciliation of our Q1 2015 non-IFRS results to our reported results can be found in our complete Q1 2015 interim report with tables on page 29 published on April 30, 2015. A reconciliation of our Q4 2014 non-IFRS results to our reported results can be found in our complete Q4 2014 interim report with tables on pages 20-25 published on January 29, 2015. A reconciliation of our Q3 2014 non-IFRS results to our reported results can be found in our complete Q3 2014 interim report with tables on pages 22-27 published on October 23, 2014.

CEO statement

Nokia delivered strong results in the second quarter, with each of our three businesses performing very well.

I am particularly pleased by Nokia Networks, which delivered improved performance overall, despite a year-on-year decline in net sales on a constant currency basis. Software sales were up significantly; core networking sales improved; we saw a reduced impact of strategic entry deals; Global Services had one of its best quarters in the history of the company; and costs remained well under control.

While we expect the telecom infrastructure market to remain challenging, I believe that our disciplined operating model and strong execution capabilities will continue to differentiate us in this environment. Additionally, we remain highly focused on reducing costs and improving efficiency in order to mitigate the impact of market conditions.

Nokia Technologies not only continued its licensing momentum in the quarter with a new agreement with LG, but also recently unveiled OZO, a truly game-changing virtual reality camera. The team in Tech has shown both disciplined execution in licensing and an entrepreneurial spirit in pursuing new growth opportunities.

HERE continued to deliver well, again showing year-on-year sales and pr

LINK:	http://company.nokia.com/en/news/press-releases/2015/07/30/nokia-corpo...
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