Nokia Q1 2009 net sales EUR 9.3 billion, non-IF...

Corporate news announcement processed and transmitted by Hugin AS.
The issuer is solely responsible for the content of this 
announcement. 
----------------------------------------------------------------------
--------------    




Non-IFRS and reported gross margin in Devices & Services 33.8%,
unchanged from Q4 2008

Nokia Corporation
Interim Report
April 16, 2009 at 13.00 (CET +1)

The complete press release with tables is available at:


http://www.nokia.com/results/Nokia_results2009Q1e.pdf



+-------------------------------------------------------------------+
|                   |    Non-IFRS first quarter 2009 results1, 2    |
|-------------------+-----------------------------------------------|
|                   |         |         |  YoY   |         |  QoQ   |
| EUR million       | Q1/2009 | Q1/2008 | Change | Q4/2008 | Change |
|-------------------+---------+---------+--------+---------+--------|
| Net sales         |   9 276 |  12 663 | -26.7% |  12 665 | -26.8% |
|-------------------+---------+---------+--------+---------+--------|
|   Devices &       |         |         |        |         |        |
| Services          |   6 173 |   9 263 | -33.4% |   8 141 | -24.2% |
|-------------------+---------+---------+--------+---------+--------|
|   NAVTEQ          |     134 |         |        |     206 | -35.0% |
|-------------------+---------+---------+--------+---------+--------|
|   Nokia Siemens   |         |         |        |         |        |
| Networks          |   2 990 |   3 404 | -12.2% |   4 340 | -31.1% |
|-------------------+---------+---------+--------+---------+--------|
|                   |         |         |        |         |        |
|-------------------+---------+---------+--------+---------+--------|
| Operating profit  |     514 |   1 984 | -74.1% |   1 239 | -58.5% |
|-------------------+---------+---------+--------+---------+--------|
|   Devices &       |         |         |        |         |        |
| Services          |     642 |   1 964 | -67.3% |     983 | -34.7% |
|-------------------+---------+---------+--------+---------+--------|
|   NAVTEQ          |       5 |         |        |      53 | -90.6% |
|-------------------+---------+---------+--------+---------+--------|
|   Nokia Siemens   |         |         |        |         |        |
| Networks          |    -122 |      81 |        |     225 |        |
|-------------------+---------+---------+--------+---------+--------|
|                   |         |         |        |         |        |
|-------------------+---------+---------+--------+---------+--------|
| Operating margin  |    5.5% |   15.7% |        |    9.8% |        |
|-------------------+---------+---------+--------+---------+--------|
|   Devices &       |         |         |        |         |        |
| Services          |   10.4% |   21.2% |        |   12.1% |        |
|-------------------+---------+---------+--------+---------+--------|
|   NAVTEQ          |    3.7% |         |        |   25.7% |        |
|-------------------+---------+---------+--------+---------+--------|
|   Nokia Siemens   |         |         |        |         |        |
| Networks          |   -4.1% |    2.4% |        |    5.2% |        |
|-------------------+---------+---------+--------+---------+--------|
|                   |         |         |        |         |        |
|-------------------+---------+---------+--------+---------+--------|
| EPS, EUR Diluted  |    0.10 |    0.39 | -74.4% |    0.26 | -61.5% |
|-------------------+-----------------------------------------------|
|                   |     Reported first quarter 2009 results1      |
|-------------------+-----------------------------------------------|
|                   |         |         |  YoY   |         |  QoQ   |
| EUR million       | Q1/2009 | Q1/2008 | Change | Q4/2008 | Change |
|-------------------+---------+---------+--------+---------+--------|
| Net sales         |   9 274 |  12 660 | -26.7% |  12 662 | -26.8% |
|-------------------+---------+---------+--------+---------+--------|
|   Devices &       |         |         |        |         |        |
| Services          |   6 173 |   9 263 | -33.4% |   8 141 | -24.2% |
|-------------------+---------+---------+--------+---------+--------|
|   NAVTEQ          |     132 |         |        |     205 | -35.6% |
|-------------------+---------+---------+--------+---------+--------|
|   Nokia Siemens   |         |         |        |         |        |
| Networks          |   2 990 |   3 401 | -12.1% |   4 338 | -31.1% |
|-------------------+---------+---------+--------+---------+--------|
|                   |         |         |        |         |        |
|-------------------+---------+---------+--------+---------+--------|
| Operating profit  |      55 |   1 531 | -96.4% |     492 | -88.8% |
|-------------------+---------+---------+--------+---------+--------|
|   Devices &       |         |         |        |         |        |
| Services          |     547 |   1 883 | -71.0% |     766 | -28.6% |
|-------------------+---------+---------+--------+---------+--------|
|   NAVTEQ          |    -120 |         |        |     -73 |  64.4% |
|-------------------+---------+---------+--------+---------+--------|
|   Nokia Siemens   |         |         |        |         |        |
| Networks          |    -361 |     -74 | 387.8% |    -179 | 101.7% |
|-------------------+---------+---------+--------+---------+--------|
|                   |         |         |        |         |        |
|-------------------+---------+---------+--------+---------+--------|
| Operating margin  |    0.6% |   12.1% |        |    3.9% |        |
|-------------------+---------+---------+--------+---------+--------|
|   Devices &       |         |         |        |         |        |
| Services          |    8.9% |   20.3% |        |    9.4% |        |
|-------------------+---------+---------+--------+---------+--------|
|   NAVTEQ          |  -90.9% |         |        |  -35.6% |        |
|-------------------+---------+---------+--------+---------+--------|
|   Nokia Siemens   |         |         |        |         |        |
| Networks          |  -12.1% |   -2.2% |        |   -4.1% |        |
|-------------------+---------+---------+--------+---------+--------|
|                   |         |         |        |         |        |
|-------------------+---------+---------+--------+---------+--------|
| EPS, EUR Diluted  |    0.03 |    0.32 | -90.6% |    0.15 | -80.0% |
+-------------------------------------------------------------------+

Note 1 relating to NAVTEQ: On July 10, 2008, Nokia completed the
acquisition of NAVTEQ Corporation. NAVTEQ is a separate reportable
segment of Nokia starting from the third quarter 2008. Accordingly,
the results of NAVTEQ are not available for the prior periods.

Note 2 relating to non-IFRS results: Non-IFRS results exclude special
items for all periods. In addition, non-IFRS results exclude
intangible asset amortization, other purchase price accounting
related items and inventory value adjustments arising from i) the
formation of Nokia Siemens Networks and ii) all business acquisitions
completed after June 30, 2008. More specific information about the
exclusions from the non-IFRS results may be found in this press
release on pages 3, 10, and 12-16.

Nokia believes that these non-IFRS financial measures provide
meaningful supplemental information to both management and investors
regarding Nokia's performance by excluding the above-described items
that may not be indicative of Nokia's business operating results.
These non-IFRS financial measures should not be viewed in isolation
or as substitutes to the equivalent IFRS measure(s), but should be
used in conjunction with the most directly comparable IFRS measure(s)
in the reported results.

A reconciliation of the non-IFRS results to our reported results for
Q1 2009 and Q1 2008 can be found in the tables on pages 10 and 12-16
of this press release. A reconciliation of our Q4 2008 non-IFRS
results can be found on pages 11-16 of our Q4 2008 Interim Report of
January 22, 2009.

FIRST QUARTER 2009 HIGHLIGHTS
- Nokia net sales of EUR 9.3 billion, down 27% year on year and
sequentially (down 24% and down 25% at constant currency).
- Devices & Services net sales of EUR 6.2 billion, down 33% year on
year and down 24% sequentially (down 31% and down 23% at constant
currency).
- Services net sales of EUR 150 million (billings of EUR 166
million), up 79% year on year and down 5% sequentially.
- Estimated industry mobile device volumes of 255 million units, down
14% year on year and down 16% sequentially.
- Nokia mobile device volumes of 93.2 million units, down 19% year on
year and down 18% sequentially.
- Nokia 5800 XpressMusic volumes of 2.6 million units, with
cumulative shipments of more than 3 million units since the
smartphone's launch in late November 2008.
- Nokia estimated mobile device market share of 37% in Q1 2009, down
from 39% in Q1 2008 and unchanged from Q4 2008.
- Nokia mobile device ASP of EUR 65, down from EUR 71 in Q4 2008.
- Devices & Services gross margin of 33.8%, unchanged from Q4 2008.
- NAVTEQ net sales of EUR 132 million, down 36% sequentially from EUR
205 million, and non-IFRS operating margin of 3.7% (25.7% in Q4 2008)
- Nokia Siemens Networks net sales of EUR 3.0 billion, down 12% year
on year and down 31% sequentially (down 9% and down 30% at constant
currency).
- Nokia operating cash flow of EUR 276 million.
- Total cash and other liquid assets of EUR 8.1 billion at the end of
Q1 2009.

OLLI-PEKKA KALLASVUO, NOKIA CEO:
"In what has been an exceptionally tough environment, we continue to
invest in a focused manner in consumer Internet services delivered
across our broad portfolio of mobile devices. Combined, these
solutions will drive our future growth. As an example in Q1, I am
especially pleased with the performance of our first mass market
touch product, the Nokia 5800 XpressMusic. Together with Comes With
Music, it is a great example of Nokia providing solutions that
consumers value.

Regarding the health of the overall mobile device market, the
inventory already in the sales channels decreased substantially
during Q1 due to extensive destocking by operators and distributors.
This adversely impacted our sales volumes in the quarter. However, it
has also resulted in the demand picture becoming more predictable as
we enter the second quarter."

INDUSTRY AND NOKIA OUTLOOK
- Nokia expects industry mobile device volumes in the second quarter
2009 to be at approximately the same level or up slightly
sequentially.
- Nokia expects its mobile device market share in the second quarter
2009 to increase sequentially.
- Nokia continues to expect 2009 industry mobile device volumes to
decline approximately 10% from 2008 levels. Nokia continues to expect
the decline to be greater in the first half than in the second half
of the year.
- Nokia continues to target an increase in its market share in mobile
devices in 2009.
- Nokia continues to target its non-IFRS operating margin in Devices
& Services to be more than 10% in the first half 2009 and to be in
the teens for the second half 2009.
- Nokia continues to target its annualized non-IFRS operating expense
run rate in Devices & Services to be lower than EUR 6 billion by the
end of 2010. This would represent a reduction of more than EUR 700
million to the annualized run rate at the beginning of 2009. Nokia
continues to target that a majority of the reduction will happen
during 2009.
- Nokia and Nokia Siemens Networks now expect the mobile
infrastructure and fixed infrastructure and related services market
to decline approximately 10% in Euro terms in 2009, from 2008 levels.
This is an update to Nokia and Nokia Siemens Networks' earlier
estimate that the mobile infrastructure and fixed infrastructure and
related services market would decline 5% or more in Euro terms in
2009, from 2008 levels.
- Nokia and Nokia Siemens Networks continue to target for Nokia
Siemens Networks market share to remain constant in 2009, compared to
2008.

FIRST QUARTER 2009 FINANCIAL HIGHLIGHTS
(Comparisons are given to the first quarter 2008, unless otherwise
indicated.)

The non-IFRS results exclusions
Q1 2009 - EUR 459 million consisting of:
- EUR 34 million of impairment of intangible assets in Devices &
Services
- EUR 59 million restructuring charge in Devices & Services
- EUR 123 million restructuring charge and other one-time items in
Nokia Siemens Networks
- EUR 116 million of intangible assets amortization and other
purchase price related items arising from the formation of Nokia
Siemens Networks
- EUR 125 million of intangible assets amortization and other
purchase price related items arising from the acquisition of NAVTEQ
- EUR 2 million of intangible assets amortization and other purchase
price related items arising from the acquisition of OZ Communications
in Devices & Services

Q4 2008 - EUR 747 million consisting of:
- EUR 286 million restructuring charge and other one-time items in
Nokia Siemens Networks
- EUR 52 million restructuring charge in Devices & Services
- EUR 165 million representing the contribution of assets to Symbian
Foundation
- EUR 5 million restructuring charge in NAVTEQ
- EUR 118 million of intangible asset amortization and other purchase
price accounting related items arising from the formation of Nokia
Siemens Networks
- EUR 121 million of intangible asset amortization and other purchase
price accounting related items arising from the acquisition of NAVTEQ

Q1 2008 - EUR 453 million (net) consisting of:
- EUR 217 million loss due to transfer of Finnish pension liabilities
in Corporate Common Functions
- EUR 81 million facilities impairment and other charges related to
closure of the Bochum site in Germany in Devices & Services
- EUR 65 million gain due to transfer of Finnish pension liabilities
in Nokia Siemens Networks
- EUR 100 million restructuring charge in Nokia Siemens Networks
- EUR 120 million of intangible asset amortization and other purchase
price accounting related items arising from the formation of Nokia
Siemens Networks

Non-IFRS results exclude special items for all periods. In addition,
non-IFRS results exclude intangible asset amortization, other
purchase price accounting related items and inventory value
adjustments arising from i) the formation of Nokia Siemens Networks
and ii) all business acquisitions completed after June 30, 2008.

Nokia Group
Nokia's first quarter 2009 net sales decreased 27% to EUR 9.3
billion, compared with EUR 12.7 billion in the first quarter 2008. At
constant currency, Group net sales would have decreased 24% year on
year and decreased 25% sequentially.

The following chart sets out the year on year and sequential growth
rates in our net sales on a reported basis and at constant currency
for the periods indicated.


+-------------------------------------------------------------------+
| NOKIA FIRST QUARTER 2009 NET SALES Reported & Constant Currency1  |
|-------------------------------------------------------------------|
|                          | Q1/2009 vs.Q1/2008  |   Q1/2009 vs.    |
|                          |       Change        | Q4/2008  Change  |
|--------------------------+---------------------+------------------|
|                          |                     |                  |
|--------------------------+---------------------+------------------|
|                          |                     |                  |
|--------------------------+---------------------+------------------|
| Group net sales -        |                     |                  |
| reported                 |                -27% |             -27% |
|--------------------------+---------------------+------------------|
| Group net sales -        |                     |                  |
| constant currency1       |                -24% |             -25% |
|--------------------------+---------------------+------------------|
|                          |                     |                  |
|--------------------------+---------------------+------------------|
| Devices & Services net   |                     |                  |
| sales - reported         |                -33% |             -24% |
|--------------------------+---------------------+------------------|
| Devices & Services net   |                     |                  |
| sales - constant         |                     |                  |
| currency1                |                -31% |             -23% |
|--------------------------+---------------------+------------------|
|                          |                     |                  |
|--------------------------+---------------------+------------------|
| Nokia Siemens Networks   |                     |                  |
| net sales - reported     |                -12% |             -31% |
|--------------------------+---------------------+------------------|
| Nokia Siemens Networks   |                     |                  |
| net sales - constant     |                     |                  |
| currency1                |                 -9% |             -30% |
+-------------------------------------------------------------------+

Note 1: Change in net sales at constant currency excludes the impact
of changes in exchange rates in comparison to the Euro, our reporting
currency.

Nokia's first quarter 2009 reported operating profit decreased 96% to
EUR 55 million, compared with EUR 1.5 billion in the first quarter
2008. Nokia's first quarter 2009 non-IFRS operating profit decreased
74% to EUR 514 million, compared with EUR 2.0 billion in the first
quarter 2008. Nokia's first quarter 2009 reported operating margin
was 0.6% (12.1%). Nokia's first quarter 2009 non-IFRS operating
margin was 5.5% (15.7%).

Operating cash flow for the first quarter 2009 was EUR 276 million.
Operating cash flow for the first quarter 2008 was EUR 757 million.
Total cash and other liquid assets were EUR 8.1 billion at March 31,
2009, compared with EUR 10.4 billion at March 31, 2008. At March 31,
2009, Nokia's net debt-equity ratio (gearing) was -14%, compared with
-53% at March 31, 2008.

Devices & Services
In the first quarter 2009, the total mobile device volumes of our
Devices & Services group were 93.2 million units, representing a
decline of 19% year on year and 18% sequentially. The overall
industry mobile device volumes for the same period were 255 million
units based on Nokia's preliminary estimate, representing a 14% year
on year decrease and a 16% sequential decrease. The lower sales
volumes for Nokia and the industry, both year on year and
sequentially, were primarily driven by the negative impact of the
rapidly deteriorating global economic conditions, including weaker
consumer and corporate spending, severely constrained credit
availability and unprecedented currency market volatility. The
sequential volume decline also reflected typical seasonal decreases
in the first quarter. In addition, extensive destocking by operators
and distributors of their mobile device inventories adversely
affected sales volumes by manufacturers, including Nokia, during the
first quarter 2009.

Of the total industry mobile device volumes, converged mobile device
industry volumes in the first quarter 2009 increased to 36.0 million
units, based on Nokia's preliminary estimate, compared with an
estimated 33.3 million units in the first quarter 2008. Our own
converged mobile device volumes were 13.7 million units in the first
quarter 2009, compared with 14.6 million units in the first quarter
2008 and 15.1 million units in the fourth quarter 2008. We shipped
approximately 5 million Nokia Nseries and over 3 million Nokia
Eseries devices during the first quarter 2009.

The following chart sets out our mobile device volumes for the
periods indicated, as well as the year on year and sequential growth
rates, by geographic area.


+-------------------------------------------------------------------+
| NOKIA MOBILE DEVICE VOLUME BY GEOGRAPHIC AREA                     |
|-------------------------------------------------------------------|
|                   |         |         |  YoY   |         |  QoQ   |
| (million units)   | Q1/2009 | Q1/2008 | Change | Q4/2008 | Change |
|-------------------+---------+---------+--------+---------+--------|
| Europe            |    22.3 |    25.7 | -13.2% |    34.7 | -35.7% |
|-------------------+---------+---------+--------+---------+--------|
| Middle East &     |         |         |        |         |        |
| Africa            |    14.8 |    20.2 | -26.7% |    18.2 | -18.7% |
|-------------------+---------+---------+--------+---------+--------|
| Greater China     |    17.9 |    21.0 | -14.8% |    12.9 |  38.8% |
|-------------------+---------+---------+--------+---------+--------|
| Asia-Pacific      |    28.2 |    34.1 | -17.3% |    29.9 |  -5.7% |
|-------------------+---------+---------+--------+---------+--------|
| North America     |     3.4 |     2.6 |  30.8% |     4.1 | -17.1% |
|-------------------+---------+---------+--------+---------+--------|
| Latin America     |     6.6 |    11.9 | -44.5% |    13.3 | -50.4% |
|-------------------+---------+---------+--------+---------+--------|
| Total             |    93.2 |   115.5 | -19.3% |   113.1 | -17.6% |
+-------------------------------------------------------------------+


Based on our preliminary market estimate, Nokia's mobile device
market share for the first quarter 2009 was 37%, compared with 39% in
the first quarter 2008 and 37% in the fourth quarter 2008. Our year
on year market share decline was driven primarily by lower market
share in Latin America, Middle East & Africa, Asia-Pacific and
Greater China. This was partially offset by a slightly higher market
share in North America and Europe. Sequentially, our market share
declined in Latin America, Europe and Asia-Pacific, but these
declines were offset by market share increases in Greater China,
Middle East & Africa and North America.

In the first quarter 2009, our market share globally as well as
regionally was distorted by extensive destocking by operators and
distributors. This is due to the fact that our reported market share
is based on the number of Nokia mobile devices shipped into the
operator and distributor channels - not the number of Nokia mobile
devices ultimately purchased by consumers during the quarter - as a
percentage of overall mobile device purchases by consumers.

Our mobile device average selling price (ASP) in the first quarter
2009 was EUR 65, down from EUR 79 in the first quarter 2008 and down
from EUR 71 in the fourth quarter 2008. Both the year on year and
sequential declines were primarily due to general price pressure, a
higher proportion of sales of lower priced products, and
lower-than-expected device volumes in our Nseries range of high-end
devices.

First quarter 2009 Devices & Services net sales declined 33% to EUR
6.2 billion, compared with EUR 9.3 billion in the first quarter 2008.
At constant currency, Devices & Services net sales would have
decreased 31%. The net sales decline resulted primarily from lower
volumes, combined with the ASP decline, compared with the first
quarter 2008. Of our total Devices & Services net sales, services
contributed EUR 150 million in the first quarter 2009, representing
79% year on year growth and a 5% sequential decrease.

Net sales grew in Devices & Services year on year in North America.
Net sales were down year on year in Latin America, Middle East &
Africa, Europe, Asia-Pacific and Greater China.

Devices & Services reported gross profit and non-IFRS gross profit
decreased 42% to EUR 2.1 billion, compared with EUR 3.6 billion in
the first quarter 2008, with a reported and non-IFRS gross margin of
33.8% (38.5%). The year on year gross margin decrease was primarily
due to a higher proportion of sales of lower end, lower margin
devices and a lower proportion of sales of new high-end, higher
margin devices, as well as general price pressure. The gross margin
was flat sequentially, as the impact of the decline in ASP was offset
by a reduction in the cost of sales.

Devices & Services reported operating profit decreased 71% to EUR 547
million, compared with EUR 1.9 billion in the first quarter 2008,
with a reported operating margin of 8.9% (20.3%). Devices & Services
non-IFRS operating profit decreased 67% to EUR 642 million, compared
with EUR 2.0 billion in the first quarter 2008, with a non-IFRS
operating margin of 10.4% (21.2%). The 67% year on year decrease in
non-IFRS operating profit for the first quarter 2009 was due
primarily to lower net sales compared with the first quarter 2008.
The impact of lower net sales was somewhat mitigated by a reduction
in our cost of sales and operating expenses during the first quarter
2009.

NAVTEQ
(Comparisons are given to the fourth quarter 2008)
First quarter 2009 NAVTEQ net sales decreased 36% sequentially to EUR
132 million, compared with EUR 205 million in the fourth quarter
2008, reflecting a sharp decline in demand for auto navigation
systems and mobile navigation devices due to the challenging
macroeconomic environment, and destocking. NAVTEQ reported gross
profit was EUR 115 million (EUR 180 million), with a gross margin of
87.1% (87.8%). Non-IFRS gross profit was EUR 117 million (EUR 181
million), with a non-IFRS gross margin of 87.3% (87.9%). NAVTEQ had
an operating loss of EUR 120 million (EUR 73 million loss). The
reported operating margin was -90.9% (-35.6%). NAVTEQ non-IFRS
operating profit was EUR 5 million (EUR 53 million), with a non-IFRS
operating margin of 3.7% (25.7%).

Nokia Siemens Networks
First quarter 2009 net sales decreased 12% to EUR 3.0 billion,
compared with EUR 3.4 billion in the first quarter 2008, reflecting a
greater-than-normal seasonal decline, challenging market conditions
and competitive factors. At constant currency, Nokia Siemens Networks
net sales would have decreased 9%.

The following chart sets out Nokia Siemens Networks net sales for the
periods indicated, as well as the year on year and sequential growth
rates, by geographic area.


+-------------------------------------------------------------------+
| NOKIA SIEMENS NETWORKS NET SALES BY GEOGRAPHIC AREA               |
|-------------------------------------------------------------------|
|                   |         |         |  YoY   |         |  QoQ   |
| EUR million       | Q1/2009 | Q1/2008 | Change | Q4/2008 | Change |
|-------------------+---------+---------+--------+---------+--------|
| Europe            |   1 097 |   1 212 |  -9.5% |   1 636 | -32.9% |
|-------------------+---------+---------+--------+---------+--------|
| Middle East &     |         |         |        |         |        |
| Africa            |     436 |     448 |  -2.7% |     615 | -29.1% |
|-------------------+---------+---------+--------+---------+--------|
| Greater China     |     284 |     269 |   5.6% |     409 | -30.6% |
|-------------------+---------+---------+--------+---------+--------|
| Asia-Pacific      |     692 |     944 | -26.7% |     967 | -28.4% |
|-------------------+---------+---------+--------+---------+--------|
| North America     |     169 |     192 | -12.0% |     198 | -14.6% |
|-------------------+---------+---------+--------+---------+--------|
| Latin America     |     312 |     336 |  -7.1% |     513 | -39.2% |
|-------------------+---------+---------+--------+---------+--------|
| Total             |   2 990 |   3 401 | -12.1% |   4 338 | -31.1% |
+-------------------------------------------------------------------+


Nokia Siemens Networks reported gross profit decreased 27% to EUR 703
million, compared with EUR 958 million in the first quarter 2008,
with a gross margin of 23.5% (28.2%). Nokia Siemens Networks non-IFRS
gross profit decreased 26% to EUR 764 million, compared with EUR 1.0
billion in the first quarter 2008, with a non-IFRS gross margin of
25.6% (30.4%). The lower year on year non-IFRS gross profit in the
first quarter 2009 was due primarily to lower year on year net sales.

Nokia Siemens Networks had a first quarter 2009 reported operating
loss of EUR 361 million compared with an operating loss of EUR 74
million in the first quarter 2008, with an operating margin of -12.1%
(-2.2%). Nokia Siemens Networks non-IFRS operating loss was EUR 122
million in the first quarter 2009, compared with a non-IFRS operating
profit of EUR 81 million in the first quarter 2008, with a non-IFRS
operating margin of -4.1% (2.4%). The year on year decline in Nokia
Siemens Networks non-IFRS operating result primarily reflected lower
net sales.

Q1 2009 OPERATING HIGHLIGHTS

Devices & Services
- Nokia continued to take action to adjust its business operations
and cost base in accordance with market demand as well as seek
savings in operational expenses, looking at all areas and activities
across Devices & Services and global support functions:
- Nokia announced and commenced measures to close its mobile devices
research and development (R&D) facilities in Jyväskylä, Finland,
affecting approximately 320 employees.
- Nokia announced and commenced measures to scale down production at
its Salo mobile device manufacturing facility with staggered
temporary lay-offs. Operations at the facility are continuing without
interruption.
- Nokia announced and commenced voluntary initiatives within Devices
& Services and global support functions aimed at reducing
personnel-related costs, including a global voluntary resignation
scheme and more extensive use of short-term unpaid leave and
sabbaticals.
- Nokia announced and commenced measures to scale back Devices &
Services sales, marketing and technology management operations,
streamline Nokia's Devices R&D organization, and increase efficiency
in certain global support functions. These measures and others,
affecting approximately 1 700 employees globally, are in line with
Nokia's plan to adjust its operations to match global consumer
demand.
- Nokia announced Ovi Store, a one-stop shop that will offer
consumers relevant, targeted media through their social connections
and their physical location information. Ovi Store consolidates
Nokia's existing media distribution services, is expected to launch
in the second quarter 2009, and will be showcased first on Nokia's
forthcoming flagship device, the Nokia N97.
- In the area of music, Nokia benefited from a strong performance by
the Nokia 5800 XpressMusic, its first mass market touch product,
which shipped 2.6 million units during the quarter. More than 3
million units have shipped since the device's launch in late November
last year. During the first quarter, Nokia further strengthened its
offering of devices optimized for music, announcing the 5730
XpressMusic, the Nokia 5330 XpressMusic and the Nokia 5030. Nokia
also extended its Comes With Music service - an 'all-you-can-eat'
music offer where users can download freely from millions of tracks
for a pre-defined period of time and keep those tracks once the
period is up - to Australia and Singapore. Additionally, Nokia
extended Nokia Music Store, its chain of digital music stores, to 18
countries.
- Nokia announced the Nokia E75, its flagship email device, and the
Nokia E55, its most compact messaging device. Both products feature
Nokia Messaging, a service which gives users access to email accounts
from Yahoo! Mail, Windows Live Hotmail and Gmail as well as accounts
from thousands of ISP's around the world. Singapore's Singtel and
Telefónica Spain are among the first operators to introduce Nokia
Messaging to customers. Nokia Messaging also includes access to
instant and social messaging services.
- In converged devices, Nokia announced the Nokia N86 8MP, a device
optimized for still and video image recording, and the Nokia N79
active. In location-based services, Nokia acquired bit-side to
strengthen and accelerate its execution capabilities in Social
Location applications and services, and announced a partnership with
América Móvil to bring Nokia Maps navigation to customers in Latin
America. Nokia also introduced a beta version of Point & Find in the
United States and United Kingdom. Point & Find enables people on the
move to access relevant information and services on the Internet
simply by pointing their mobile phone camera at real life objects.
- Nokia strengthened its midrange device portfolio with the
announcement of the Nokia 6720 classic, the Nokia 6710 Navigator, the
Nokia 6700 classic, the Nokia 6303 classic and the Nokia 2700
classic, devices designed to strike a balance between design,
functionality and affordability.
- Nokia announced that it selected Broadcom as a next generation 3G
baseband, radio frequency (RF) and mixed signal chipset system
supplier for worldwide markets. Nokia and Broadcom are cooperating on
technology, including Nokia modem technology.
- Nokia and Qualcomm announced that they are planning to work
together to develop advanced Universal Mobile Telecommunications
System (UMTS) mobile devices, initially for the North American
market.

NAVTEQ
- NAVTEQ extended its South American coverage with the launch of
navigable maps of Chile and Venezuela, providing automotive-grade
quality data to portable and mobile devices.
- NAVTEQ signed an agreement with AutoroutesTrafic, French Motorway
Operations Partnership, for traffic data that will become a key
component in a real-time traffic offering in France.
- NAVTEQ expanded its global business arrangement with Microsoft,
providing access to all countries in the NAVTEQ database as well as
the right to additional content.
- NAVTEQ announced an enhanced Traffic Patterns product in Europe,
with updates to the historic traffic database that now includes
coverage of the United Kingdom.

Nokia Siemens Networks
- Nokia Siemens Networks won two key five-year managed services deals
with Orange. The operator outsourced the operations of its network in
the UK to Nokia Siemens Networks, which was also awarded a contract
to manage Orange's multi-vendor fixed and wireless networks in
Spain.
- Nokia Siemens Networks strengthened its services capability with
the inauguration of a Global Networks Solutions Centre in Noida,
India.
- Verizon, the US operator, selected Nokia Siemens Networks as a
supplier of its IP Multi-Media Subsystem (IMS) network, which will
enable rich multimedia applications across its networks.
- Nokia Siemens Networks announced a number of technological advances
including the launch of the Flexi Multiradio base station which
allows GSM/EDGE, WCDMA/HSPA/HSPA+ and LTE standards to run
concurrently in a single unit, and the Evolved Packet Core for LTE
that will enable operators to efficiently offer a full range of data,
voice, and high-quality and real-time multimedia services over
different wireless standards using the same open platform in the core
network.
- At Mobile World Congress, Nokia Siemens Networks showcased new
solutions including FlexiPacket Microwave, a next generation full
packet microwave solution which combines Carrier Ethernet Transport
with Microwave Radio, and charge@once unified and business solutions
that allow operators to combine charging and billing.
- China's leading telecom operators, China Mobile and China Unicom
signed agreements to purchase 2G and 3G mobile equipments and
services worth EUR 880 million from Nokia Siemens Networks during
2009.

For more information on the operating highlights mentioned above,
please refer to related press announcements at the following links:


http://www.nokia.com/press, 

http://www.navteq.com/about/press.html,
 

http://www.nokiasiemensnetworks.com/press

NOKIA IN THE FIRST QUARTER 2009
(The following discussion is of Nokia's reported results. Comparisons
are given to the first quarter 2008 results, unless otherwise
indicated.)

On July 10, 2008, Nokia completed the acquisition of NAVTEQ
Corporation. NAVTEQ is a separate reportable segment of Nokia
starting from the third quarter 2008. Accordingly, the results of
NAVTEQ are not available for the prior periods.

Nokia's net sales decreased 27% to EUR 9 274 million (EUR 12 660
million). Net sales of Devices & Services decreased 33% to EUR 6 173
million (EUR 9 263 million). Net sales of NAVTEQ were EUR 132
million. Net sales of Nokia Siemens Networks decreased 12% to EUR 2
990 million (EUR 3 401 million).

Operating profit decreased 96% to EUR 55 million (EUR 1 531 million),
representing an operating margin of 0.6% (12.1%). Operating profit in
Devices & Services decreased 71% to EUR 547 million (EUR 1 883
million), representing an operating margin of 8.9% (20.3%). Operating
loss in NAVTEQ was EUR 120 million, representing an operating margin
of -90.9%. Operating loss in Nokia Siemens Networks was EUR 361
million (loss of EUR 74 million), representing an operating margin of
-12.1% (-2.2%). Corporate Common Functions reported expense totaled
EUR 11 million (EUR 278 million).

In the period from January to March 2009, net financial expense was
EUR 77 million (net financial income EUR 68 million). Loss before tax
was EUR 12 million (profit of EUR 1 607 million). Profit was EUR 4
million (EUR 1 200 million), based on a profit of EUR 122 million
(EUR 1 222 million) attributable to equity holders of the parent and
a negative EUR 118 million (negative EUR 22 million) attributable to
minority interests. Earnings per share decreased to EUR 0.03 (basic)
and EUR 0.03 (diluted), compared with EUR 0.32 (basic) and EUR 0.32
(diluted) in the first quarter of 2008.

PERSONNEL
The average number of employees during January-March 2009 was 124
842, of which the average number of employees at Nokia Siemens
Networks was 60 543. At March 31, 2009, Nokia employed a total of 124
292 people (116 378 people at March 31, 2008), of which 60 546 were
employed by Nokia Siemens Networks (60 391 people at March 31, 2008).

SHARES
The total number of Nokia shares at March 31, 2009 was 3 744 948 552.
At March 31, 2009, Nokia and its subsidiary companies owned 41 763
310 Nokia shares, representing approximately 1.1% of the total number
of Nokia shares and the total voting rights.

1 EUR = 1.296 USD

The complete press release with tables is available at:


http://www.nokia.com/results/Nokia_results2009Q1e.pdf


FORWARD-LOOKING STATEMENTS

It should be noted that certain statements herein which are not
historical facts, including, without limitation, those regarding: A)
the timing of product, services and solution deliveries; B) our
ability to develop, implement and commercialize new products,
services, solutions and technologies; C) our ability to develop and
grow our consumer Internet services business; D) expectations
regarding market developments and structural changes; E) expectations
regarding our mobile device volumes, market share, prices and
margins; F) expectations and targets for our results of operations;
G) the outcome of pending and threatened litigation; H) expectations
regarding the successful completion of contemplated acquisitions on a
timely basis and our ability to achieve the set targets upon the
completion of such acquisitions; and I) statements preceded by
"believe," "expect," "anticipate," "foresee," "target," "estimate,"
"designed," "plans," "will" or similar expressions are
forward-looking statements. These statements are based on
management's best assumptions and beliefs in light of the information
currently available to it. Because they involve risks and
uncertainties, actual results may differ materially from the results
that we currently expect. Factors that could cause these differences
include, but are not limited to: 1) the deteriorating global economic
conditions and related financial crisis and their impact on us, our
customers and end-users of our products, services and solutions, our
suppliers and collaborative partners; 2) the development of the
mobile and fixed communications industry, as well as the growth and
profitability of the new market segments that we target and our
ability to successfully develop or acquire and market products,
services and solutions in those segments; 3) the intensity of
competition in the mobile and fixed communications industry and our
ability to maintain or improve our market position or respond
successfully to changes in the competitive landscape; 4)
competitiveness of our product, services and solutions portfolio; 5)
our ability to successfully manage costs; 6) exchange rate
fluctuations, including, in particular, fluctuations between the
euro, which is our reporting currency, and the US dollar, the
Japanese yen, the Chinese yuan and the UK pound sterling, as well as
certain other currencies; 7) the success, financial condition and
performance of our suppliers, collaboration partners and customers;
8) our ability to source sufficient amounts of fully functional
components, sub-assemblies, software and content without interruption
and at acceptable prices; 9) the impact of changes in technology and
our ability to develop or otherwise acquire and timely and
successfully commercialize complex technologies as required by the
market; 10) the occurrence of any actual or even alleged defects or
other quality, safety or security issues in our products, services
and solutions; 11) the impact of changes in government policies,
trade policies, laws or regulations or political turmoil in countries
where we do business; 12) our success in collaboration arrangements
with others relating to development of technologies or new products,
services and solutions; 13) our ability to manage efficiently our
manufacturing and logistics, as well as to ensure the quality,
safety, security and timely delivery of our products, services and
solutions; 14) inventory management risks resulting from shifts in
market demand; 15) our ability to protect the complex technologies,
which we or others develop or that we license, from claims that we
have infringed third parties' intellectual property rights, as well
as our unrestricted use on commercially acceptable terms of certain
technologies in our products, services and solutions; 16) our ability
to protect numerous Nokia, NAVTEQ and Nokia Siemens Networks
patented, standardized or proprietary technologies from third-party
infringement or actions to invalidate the intellectual property
rights of these technologies; 17) any disruption to information
technology systems and networks that our operations rely on; 18)
developments under large, multi-year contracts or in relation to
major customers; 19) the management of our customer financing
exposure;  20) our ability to retain, motivate, develop and recruit
appropriately skilled employees; 21) whether, as a result of
investigations into alleged violations of law by some former
employees of Siemens AG ("Siemens"), government authorities or others
take further actions against Siemens and/or its employees that may
involve and affect the carrier-related assets and employees
transferred by Siemens to Nokia Siemens Networks, or there may be
undetected additional violations that may have occurred prior to the
transfer, or violations that may have occurred after the transfer, of
such assets and employees that could result in additional actions by
government authorities; 22) any impairment of Nokia Siemens Networks
customer relationships resulting from the ongoing government
investigations involving the Siemens carrier-related operations
transferred to Nokia Siemens Networks; 23) unfavorable outcome of
litigations; 24) allegations of possible health risks from
electromagnetic fields generated by base stations and mobile devices
and lawsuits related to them, regardless of merit; as well as the
risk factors specified on pages 11-28 of Nokia's annual report on
Form 20-F for the year ended December 31, 2008 under Item 3D. "Risk
Factors." Other unknown or unpredictable factors or underlying
assumptions subsequently proving to be incorrect could cause actual
results to differ materially from those in the forward-looking
statements. Nokia does not undertake any obligation to publicly
update or revise forward-looking statements, whether as a result of
new information, future events or otherwise, except to the extent
legally required.

Nokia, Helsinki - April 16, 2009

Media and Investor Contacts:
Corporate Communications, tel. [phone]
Investor Relations Europe, tel. [phone]
Investor Relations US, tel. [phone]

- Nokia plans to publish its second quarter 2009 results on July 16,
2009.
- The Annual General Meeting will be held on April 23, 2009.

www.nokia.com


 
--- End of Message ---

NOKIA
P.O. Box 226<br>FIN-00045 NOKIA GROUP   Espoo 

WKN: 870737; 
ISIN: FI0009000681; Index: DJ STOXX Large 200, DJ STOXX 50;
Listed: Nordic list (Large Cap) in THE HELSINKI STOCK EXCHANGE;