Nokia Q2 2011 net sales EUR 9.3 billion, non-IF...

6.7% Devices & Services non-IFRS operating margin, benefiting from IPR royalty
income related to the second quarter 2011 and settling prior periods

Nokia Corporation
Interim Report
July 21, 2011 at 13.30 (CET+1)

This is a summary of the second quarter 2011 interim report published today. The
complete second quarter 2011 interim report with tables is available at


http://www.nokia.com/results/Nokia_results2011Q2e.pdf. Investors should not rely
on summaries of our interim reports only, but should review the complete interim
reports with tables.

+---------------------------------+--------------------------------------------+
|                                 |Reported and Non-IFRS second quarter 2011   |
|                                 |results1,2                                  |
+---------------------------------+-------+-------+-------+-------+------------+
|                                 |       |       |  YoY  |       |    QoQ     |
|EUR million                      |Q2/2011|Q2/2010| Change|Q1/2011|   Change   |
+---------------------------------+-------+-------+-------+-------+------------+
|Nokia                            |       |       |       |       |            |
+---------------------------------+-------+-------+-------+-------+------------+
| Net sales                       |  9 275| 10 003|    -7%| 10 399|        -11%|
+---------------------------------+-------+-------+-------+-------+------------+
| Operating profit                |   -487|    295|       |    439|            |
+---------------------------------+-------+-------+-------+-------+------------+
| Operating profit (non-IFRS)     |    391|    660|   -41%|    704|        -44%|
+---------------------------------+-------+-------+-------+-------+------------+
| EPS, EUR diluted                |  -0.10|   0.06|       |   0.09|            |
+---------------------------------+-------+-------+-------+-------+------------+
| EPS, EUR diluted (non-IFRS)3    |   0.06|   0.11|   -45%|   0.13|        -54%|
+---------------------------------+-------+-------+-------+-------+------------+
| Net cash from operating         |       |       |       |       |            |
|activities                       |   -176|    944|       |   -173|            |
+---------------------------------+-------+-------+-------+-------+------------+
| Net cash and other liquid       |       |       |       |       |            |
|assets4                          |  3 891|  4 088|    -5%|  6 372|        -39%|
+---------------------------------+-------+-------+-------+-------+------------+
|Devices & Services5              |       |       |       |       |            |
+---------------------------------+-------+-------+-------+-------+------------+
| Net sales                       |  5 467|  6 799|   -20%|  7 087|        -23%|
+---------------------------------+-------+-------+-------+-------+------------+
| Smart Devices net sales         |  2 368|  3 503|   -32%|  3 528|        -33%|
+---------------------------------+-------+-------+-------+-------+------------+
| Mobile Phones net sales         |  2 551|  3 190|   -20%|  3 407|        -25%|
+---------------------------------+-------+-------+-------+-------+------------+
| Mobile device volume (million   |       |       |       |       |            |
|units)                           |   88.5|  111.0|   -20%|  108.5|        -18%|
+---------------------------------+-------+-------+-------+-------+------------+
| Smart Devices volume (million   |       |       |       |       |            |
|units)                           |   16.7|   25.2|   -34%|   24.2|        -31%|
+---------------------------------+-------+-------+-------+-------+------------+
| Mobile Phones volume (million   |       |       |       |       |            |
|units)                           |   71.8|   85.8|   -16%|   84.3|        -15%|
+---------------------------------+-------+-------+-------+-------+------------+
| Mobile device ASP6              |     62|     61|     2%|     65|         -5%|
+---------------------------------+-------+-------+-------+-------+------------+
| Smart Devices ASP6              |    142|    139|     2%|    146|         -3%|
+---------------------------------+-------+-------+-------+-------+------------+
| Mobile Phones ASP6              |     36|     37|    -3%|     40|        -10%|
+---------------------------------+-------+-------+-------+-------+------------+
| Operating profit                |   -247|    643|       |    690|            |
+---------------------------------+-------+-------+-------+-------+------------+
| Operating profit (non-IFRS)     |    369|    647|   -43%|    694|        -47%|
+---------------------------------+-------+-------+-------+-------+------------+
| Operating margin %              |  -4.5%|   9.5%|       |   9.7%|            |
+---------------------------------+-------+-------+-------+-------+------------+
| Operating margin % (non-IFRS)   |   6.7%|   9.5%|       |   9.8%|            |
+---------------------------------+-------+-------+-------+-------+------------+
|NAVTEQ                           |       |       |       |       |            |
+---------------------------------+-------+-------+-------+-------+------------+
| Net sales                       |    245|    252|    -3%|    232|          6%|
+---------------------------------+-------+-------+-------+-------+------------+
| Operating profit                |    -58|    -81|       |    -62|            |
+---------------------------------+-------+-------+-------+-------+------------+
| Operating profit (non-IFRS)     |     53|     50|     6%|     54|         -2%|
+---------------------------------+-------+-------+-------+-------+------------+
| Operating margin %              | -23.7%| -32.1%|       | -26.7%|            |
+---------------------------------+-------+-------+-------+-------+------------+
| Operating margin % (non-IFRS)   |  21.5%|  19.8%|       |  23.3%|            |
+---------------------------------+-------+-------+-------+-------+------------+
|Nokia Siemens Networks7          |       |       |       |       |            |
+---------------------------------+-------+-------+-------+-------+------------+
| Net sales                       |  3 642|  3 039|    20%|  3 171|         15%|
+---------------------------------+-------+-------+-------+-------+------------+
| Operating profit                |   -111|   -179|       |   -142|            |
+---------------------------------+-------+-------+-------+-------+------------+
| Operating profit (non-IFRS)     |     40|     51|   -22%|      3|       1233%|
+---------------------------------+-------+-------+-------+-------+------------+
| Operating margin %              |  -3.0%|  -5.9%|       |  -4.5%|            |
+---------------------------------+-------+-------+-------+-------+------------+
| Operating margin % (non-IFRS)   |   1.1%|   1.7%|       |   0.1%|            |
+---------------------------------+-------+-------+-------+-------+------------+

Note 1 relating to January-June 2011 results: Nokia reported net sales were EUR
19 674 million and reported earnings per share (diluted) were EUR -0.01 for the
period from January 1 to June 30, 2011. Further information about the results
for the period from January 1 to June 30, 2011 can be found on pages
16, 18, 26, 27 and 29 of the complete Q2 2011 interim report with tables.

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 our complete
interim report with tables for Q2 2011 on pages 4 and 20-22 and 24. 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 Q2 2011 and Q2 2010 can be found in the tables on pages
17, 20-24 of our complete interim report with tables. A reconciliation of our Q1
2011 non-IFRS results can be found on pages 11-12 and 14-18 of our complete Q1
2011 interim report with tables which was published on April 21, 2011.

Note 3 relating to non-IFRS Nokia EPS: Nokia taxes continued to be unfavorably
impacted by Nokia Siemens Networks taxes as no tax benefits are recognized for
certain Nokia Siemens Networks deferred tax items. In Q2, this was partially
offset by lower Devices & Services taxes. If Nokia's estimated long-term tax
rate of 26% had been applied, non-IFRS Nokia EPS would have been approximately
0.3 Euro cent higher in Q2 2011.

Note 4 relating to Nokia net cash and other liquid assets: Calculated as total
cash and other liquid assets less interest-bearing liabilities.

Note 5 relating to Devices & Services reporting structure: Effective from April
1, 2011, our Devices & Services business includes two new operating and
reportable segments - Smart Devices, which focuses on smartphones, and Mobile
Phones, which focuses on mass market mobile devices - as well as Devices &
Services Other.  Prior period results for each quarter and the full year 2010
and Q1 2011 have been regrouped (on an unaudited basis) for comparability
purposes according to the new reporting format. The regrouped financial
information can be accessed at: 

http://www.nokia.com/investors

Note 6 relating to average selling prices (ASP): Mobile device ASP represents
total Devices & Services net sales (Smart Devices net sales, Mobile Phones net
sales, and Devices & Services Other net sales) divided by total Devices &
Services volumes. Devices & Services Other net sales includes net sales of
Nokia's luxury phone business Vertu and spare parts, as well as intellectual
property royalty income. Smart Devices ASP represents Smart Devices net sales
divided by Smart Devices volumes. Mobile Phones ASP represents Mobile Phones net
sales divided by Mobile Phones volumes.

Note 7 relating to the acquired Motorola Solutions networks assets: Nokia
Siemens Networks operating results for Q2 2011 include the results of the
acquired Motorola Solutions networks assets from April 30, 2011. Accordingly,
the results of Nokia Siemens Networks for Q2 2011 are not directly comparable to
its results for prior periods. Information that excludes the results of the
acquired Motorola assets in Q2 2011 is provided in the discussion of Nokia
Siemens Networks operating results. Additionally, our complete interim report
with tables for Q2 2011 includes additional information on the acquisition of
Motorola Solutions' networks assets on pages 31-32.

STEPHEN ELOP, NOKIA CEO:
The challenges we are facing during our strategic transformation manifested in a
greater than expected way in Q2 2011. However, even within the quarter, I
believe our actions to mitigate the impact of these challenges have started to
have a positive impact on the underlying health of our business. Most
importantly, we are making better-than-expected progress toward our strategic
goals.

In Q2, our immediate action to manage unexpected sales and inventory patterns
enabled us to create healthier sales channel dynamics, which led to greater
business stability in the latter weeks of the quarter.

- Most notably we took action in China and Europe to address an inventory build-
up that occurred in the first quarter of 2011.

- We took a more responsive approach to product pricing around the world.

- We have shifted our sales focus and marketing resources more towards retail
interactions with consumers.

- We made changes in certain critical sales management.

During this time of transition, we expect competitive pressures to continue.
However, we have a clear strategy to address the concerns about our product
competitiveness. In Q2, both our Smart Devices and Mobile Phones business units
moved forward on their plans.

- In Smart Devices, those who already have viewed our early Windows Phone work
are very optimistic about the devices Nokia will bring to market and about the
long-term opportunities. Step by step, beginning this year, we plan to have a
sequence of concentrated product launches in specific countries, systematically
increasing the number of countries and launch partners.

- In Mobile Phones, early results of the Dual SIM product launches are very
encouraging, and we are on track to deliver more products this year.

This shift into the execution of our new strategy also has allowed us to
identify additional opportunities for operational improvement. We are
accelerating our plans for expense reductions, and we now plan to exceed our
previous target of non-IFRS operating expense reductions in Devices & Services
of EUR 1 billion for the full year 2013.

It was also validated during Q2 that Nokia understands how to take advantage of
our strong intellectual property portfolio. We are well positioned to defend
against intellectual property claims and to ensure that other industry
participants are properly licensed.

Thus, while our Q2 results were clearly disappointing, we are executing well on
the initiatives that are most important to our longer term competitiveness.
Some progress is already evident, and thus we are targeting to end this year
with more net cash and liquid assets than at the end of Q2 2011.  We firmly
believe that our deliberate and unwavering commitment to making the changes
necessary at Nokia is the right way to deal with the disruptive forces in our
industry and drive value creation for our shareholders.

NOKIA OUTLOOK

- Nokia targets Nokia Group net cash and other liquid assets at the end of 2011
to be above the EUR 3.9 billion balance at the end of the second quarter 2011.

- Due to limited visibility, Nokia is providing a wider than normal range for
its Devices & Services non-IFRS operating margin outlook for the third quarter
2011. Nokia expects its non-IFRS Devices & Services operating margin in the
third quarter 2011 to be slightly above breakeven, ranging either above or below
this level by approximately 2 percentage points. This outlook is based on our
expectations regarding a number of factors, including:
- Competitive industry dynamics;
- Nokia's actions to intensify its focus on retail sales marketing to drive net
sales;
- Improved competitiveness in our Mobile Phones unit due to the ramp up of Dual
SIM devices;
- Timing of our new product shipments; and
- The macroeconomic environment.

- Nokia is accelerating its plans to reduce its Devices & Services non-IFRS
operating expenses and Nokia now targets to exceed its previous Devices &
Services non-IFRS operating expense reduction target of EUR 1 billion for the
full year 2013, compared to the full year 2010 Devices & Services non-IFRS
operating expenses of EUR 5.65 billion.

- Nokia and Nokia Siemens Networks expect Nokia Siemens Networks net sales to be
between EUR 3.2 billion and EUR 3.5 billion in the third quarter 2011.

- Nokia and Nokia Siemens Networks expect the non-IFRS operating margin in Nokia
Siemens Networks to be between -3% and breakeven in the third quarter 2011.

- Nokia and Nokia Siemens Networks continue to target Nokia Siemens Networks net
sales to grow faster than the market in 2011.

- Nokia and Nokia Siemens Networks continue to target Nokia Siemens Networks
non-IFRS operating margin to be above breakeven in 2011.

- Nokia and Nokia Siemens Networks continue to target Nokia Siemens Networks to
reduce its non-IFRS annualized operating expenses and production overheads by
EUR 500 million by the end of 2011, compared to the end of 2009.

- The outlook relating to Nokia Siemens Networks includes the impact of the
acquisition of Motorola Solutions' networks assets. This is an update to the
previous outlook that did not include the impact of the acquisition of Motorola
Solutions' networks assets.

SECOND QUARTER 2011 FINANCIAL HIGHLIGHTS

The non-IFRS results exclude:

Q2 2011 - EUR 878 million consisting of:
- EUR 68 million restructuring charge and other associated items in Nokia
Siemens Networks
- EUR 297 million restructuring charge in Devices & Services
- EUR 275 million accrued Accenture deal consideration in Devices & Services
- EUR 41 million impairment of shares in an associated company in Devices &
Services
- EUR 83 million of intangible asset amortization and other purchase price
accounting related items arising from the formation of Nokia Siemens Networks
and the acquisition of Motorola's networks assets
- EUR 111 million of intangible asset amortization and other purchase price
accounting related items arising from the acquisition of NAVTEQ
- EUR 3 million of intangible assets amortization and other purchase price
related items arising from the acquisition of OZ Communications, Novarra and
Motally in Devices & Services

Q2 2010 - EUR 365 million consisting of:
- EUR 114 million restructuring charge and other associated items in Nokia
Siemens Networks
- EUR 116 million of intangible asset amortization and other purchase price
accounting related items arising from the formation of Nokia Siemens Networks
- EUR 131 million of intangible asset amortization and other purchase price
accounting related items arising from the acquisition of NAVTEQ
- EUR 4 million of intangible assets amortization and other purchase price
related items arising from the acquisition of OZ Communications, Novarra and
MetaCarta in Devices & Services

Q1 2011 - EUR 265 million consisting of:
- EUR 28 million restructuring charge and other associated items in Nokia
Siemens Networks
- EUR 117 million of intangible asset amortization and other purchase price
accounting related items arising from the formation of Nokia Siemens Networks
- EUR 116 million of intangible asset amortization and other purchase price
accounting related items arising from the acquisition of NAVTEQ
- EUR 4 million of intangible assets amortization and other purchase price
related items arising from the acquisition of OZ Communications, Novarra and
Motally in Devices & Services

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

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.

+---------------------------------------------------------------------------+
| SECOND QUARTER 2011 NET SALES, REPORTED & CONSTANT CURRENCY1              |
+-------------------------------------------------------+---------+---------+
|                                                       |   YoY   |   QoQ   |
|                                                       |  Change |  Change |
+-------------------------------------------------------+---------+---------+
| Group net sales - reported                            |     -7% |    -11% |
+-------------------------------------------------------+---------+---------+
| Group net sales - constant currency1                  |     -7% |     -9% |
+-------------------------------------------------------+---------+---------+
|                                                       |         |         |
+-------------------------------------------------------+---------+---------+
| Devices & Services net sales - reported               |    -20% |    -23% |
+-------------------------------------------------------+---------+---------+
| Devices & Services net sales - constant currency1     |    -20% |    -21% |
+-------------------------------------------------------+---------+---------+
|                                                       |         |         |
+-------------------------------------------------------+---------+---------+
| NAVTEQ net sales - reported                           |     -3% |      6% |
+-------------------------------------------------------+---------+---------+
| NAVTEQ net sales - constant currency1                 |      1% |      9% |
+-------------------------------------------------------+---------+---------+
|                                                       |         |         |
+-------------------------------------------------------+---------+---------+
| Nokia Siemens Networks net sales - reported           |     20% |     15% |
+-------------------------------------------------------+---------+---------+
| Nokia Siemens Networks net sales - constant currency1 |     21% |     16% |
+-------------------------------------------------------+---------+---------+

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.

The following chart sets out Nokia Group's cash flow (for the periods indicated)
and financial position (at the end of the periods indicated), as well as the
year-on-year and sequential growth rates.

+------------------------------------------------------------------------------+
|NOKIA GROUP CASH FLOW AND FINANCIAL POSITION                                  |
+--------------------------------+-------+-------+----------+-------+----------+
|EUR million                     |Q2/2011|Q2/2010|YoY Change|Q1/2011|QoQ Change|
+--------------------------------+-------+-------+----------+-------+----------+
|Net cash from operating         |       |       |          |       |          |
|activities                      |   -176|    944|          |   -173|          |
+--------------------------------+-------+-------+----------+-------+----------+
|Total cash and other liquid     |       |       |          |       |          |
|assets                          |  9 358|  9 463|       -1%| 11 056|      -15%|
+--------------------------------+-------+-------+----------+-------+----------+
|Net cash and other liquid assets|  3 891|  4 088|       -5%|  6 372|      -39%|
+--------------------------------+-------+-------+----------+-------+----------+



Year-on-year, the decrease in net cash from operating activities in the second
quarter 2011 was due to negative net working capital impacts mainly driven by
lower net sales and an unfavorable geographic mix, as well as lower underlying
profitability. These factors were to some extent offset by higher cash inflows
of IPR royalty income related to the second quarter 2011 and earlier periods,
cash inflows related to foreign currency hedging activities and lower income
taxes paid. Sequentially, the decrease in net cash from operating activities in
the second quarter 2011 was due to lower underlying profitability, which was
offset to some extent by less negative net working capital impacts compared to
the previous quarter, higher cash inflows of IPR royalty income related to the
second quarter 2011 and earlier periods, cash inflows related to foreign
currency hedging activities and lower income taxes paid.

Total as well as net cash and other liquid assets in the second quarter 2011
were somewhat lower compared to the second quarter 2010 primarily due to payment
of the dividend, cash outflow related to the acquisition of Motorola's networks
assets and capital expenditure, offset to a large extent by positive overall
cash generation. Sequentially, total as well as net cash and other liquid assets
decreased primarily due to payment of the dividend. On a sequential basis, net
cash and other liquid assets decreased also due to cash outflow related to the
acquisition of Motorola's networks assets that was financed mainly by an
increase in short-term interest bearing liabilities.

Devices & Services

Effective from April 1, 2011, our Devices & Services business includes two new
operating and reportable segments - Smart Devices, which focuses on smartphones,
and Mobile Phones, which focuses on mass market mobile devices - as well as
Devices & Services Other.  Prior period results for each quarter and the full
year 2010 and Q1 2011 have been regrouped (on an unaudited basis) for
comparability purposes according to the new reporting format. The regrouped
financial information can be accessed at: 

http://www.nokia.com/investors

The following chart sets out a summary of the results for our Devices & Services
business for the periods indicated, as well as the year-on-year and sequential
growth rates.

+------------------------------------------------------------------------------+
|DEVICES & SERVICES RESULTS SUMMARY                                            |
+--------------------------------+-------+-------+----------+-------+----------+
|                                |Q2/2011|Q2/2010|YoY Change|Q1/2011|QoQ Change|
+--------------------------------+-------+-------+----------+-------+----------+
|Net sales (EUR millions)1       |  5 467|  6 799|      -20%|  7 087|      -23%|
+--------------------------------+-------+-------+----------+-------+----------+
|Mobile device volume (million   |       |       |          |       |          |
|units)                          |   88.5|  111.0|      -20%|  108.5|      -18%|
+--------------------------------+-------+-------+----------+-------+----------+
|Mobile device ASP (EUR)         |     62|     61|        2%|     65|       -5%|
+--------------------------------+-------+-------+----------+-------+----------+
|Non-IFRS gross margin (%)       |  31.1%|  30.2%|          |  29.1%|          |
+--------------------------------+-------+-------+----------+-------+----------+
|Non-IFRS operating expenses (EUR|       |       |          |       |          |
|millions)                       |  1 329|  1 425|       -7%|  1 385|       -4%|
+--------------------------------+-------+-------+----------+-------+----------+
|Non-IFRS operating margin (%)   |   6.7%|   9.5%|          |   9.8%|          |
+--------------------------------+-------+-------+----------+-------+----------+

Note 1: Includes IPR royalty income recognized in Devices & Services Other net
sales.

Net Sales
The year-on-year and sequential declines in our Devices & Services net sales are
discussed below in our operating analysis of our Smart Devices and Mobile Phones
business units. Our overall Devices & Services net sales in the second quarter
2011 benefited from the recognition of approximately EUR 430 million of IPR
royalty income related to the second quarter 2011 and earlier periods recognized
in Devices & Services Other net sales.

The following chart sets out the net sales for our Devices & Services business
for the periods indicated, as well as the year-on-year and sequential growth
rates, by geographic area. The IPR royalty income described in the paragraph
above has been allocated to the geographic areas contained in this chart.

+------------------------------------------------------------------------------+
| DEVICES & SERVICES NET SALES BY GEOGRAPHIC AREA                              |
+----------------------+---------+---------+------------+---------+------------+
| EUR million          | Q2/2011 | Q2/2010 | YoY Change | Q1/2011 | QoQ Change |
+----------------------+---------+---------+------------+---------+------------+
| Europe               |   1 666 |   2 173 |       -23% |   2 082 |       -20% |
+----------------------+---------+---------+------------+---------+------------+
| Middle East & Africa |     988 |     934 |         6% |   1 088 |        -9% |
+----------------------+---------+---------+------------+---------+------------+
| Greater China        |     913 |   1 373 |       -34% |   1 902 |       -52% |
+----------------------+---------+---------+------------+---------+------------+
| Asia-Pacific         |   1 085 |   1 543 |       -30% |   1 317 |       -18% |
+----------------------+---------+---------+------------+---------+------------+
| North America        |      88 |     223 |       -61% |     140 |       -37% |
+----------------------+---------+---------+------------+---------+------------+
| Latin America        |     727 |     553 |        31% |     558 |        30% |
+----------------------+---------+---------+------------+---------+------------+
| Total                |   5 467 |   6 799 |       -20% |   7 087 |       -23% |
+----------------------+---------+---------+------------+---------+------------+



Volume
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.

+------------------------------------------------------------------------------+
| DEVICES & SERVICES MOBILE DEVICE VOLUMES BY GEOGRAPHIC AREA                  |
+----------------------+---------+---------+------------+---------+------------+
| million units        | Q2/2011 | Q2/2010 | YoY Change | Q1/2011 | QoQ Change |
+----------------------+---------+---------+------------+---------+------------+
| Europe               |    18.4 |    26.1 |       -30% |    23.4 |       -21% |
+----------------------+---------+---------+------------+---------+------------+
| Middle East & Africa |    20.5 |    21.0 |        -2% |    22.2 |        -8% |
+----------------------+---------+---------+------------+---------+------------+
| Greater China        |    11.3 |    19.3 |       -41% |    23.9 |       -53% |
+----------------------+---------+---------+------------+---------+------------+
| Asia-Pacific         |    24.5 |    30.8 |       -20% |    27.3 |       -10% |
+----------------------+---------+---------+------------+---------+------------+
| North America        |     1.5 |     2.6 |       -42% |     1.2 |        25% |
+----------------------+---------+---------+------------+---------+------------+
| Latin America        |    12.3 |    11.2 |        10% |    10.5 |        17% |
+----------------------+---------+---------+------------+---------+------------+
| Total                |    88.5 |   111.0 |       -20% |   108.5 |       -18% |
+----------------------+---------+---------+------------+---------+------------+



On a year-on-year and sequential basis, the declines in our total Devices &
Services volumes were driven by declines in both our Smart Devices and Mobile
Phones volumes, with a greater percentage decline in our Smart Devices volumes.

At the end of the first quarter 2011, our sales channel inventories were
slightly above normal levels given then anticipated volumes. During the second
quarter 2011, distributors and operators purchased fewer of our devices across
our portfolio as they reduced their inventories of Nokia devices. The second
quarter 2011 ended with our sales channel inventories near the midpoint of our
normal range of 4-6 weeks.

Due to the devastation caused by the earthquake and tsunami in Japan, we had
previously expected our component supply to be adversely impacted in the second
and third quarters of 2011. In the second quarter 2011, we were able to redirect
our component requirements to suppliers with production capacity and, in
addition, our suppliers in Japan were able to recover faster than Nokia
anticipated. Thus, related to the tragic events in Japan, we did not experience
component constraints in the second quarter 2011, and we do not expect a
significant impact in the third quarter 2011 or going forward.

Average Selling Price
On a year-on-year basis, the overall increase in our Devices & Services ASP in
the second quarter 2011 was driven by the recognition of approximately EUR 430
million of IPR royalty income related to the second quarter 2011 and earlier
periods recognized in Devices & Services Other and a positive impact from
foreign currency exchange hedging, partially offset by the lower ASP in Mobile
Phones and Smart Devices, appreciation of the Euro against certain currencies,
and a product mix shift towards Mobile Phones.

On a sequential basis, the overall decline in our Devices & Services ASP was
driven by a product mix shift towards Mobile Phones, the lower ASP in Mobile
Phones and Smart Devices, and the appreciation of the Euro against certain
currencies, partially offset by the recognition of approximately EUR 430 million
of IPR royalty income related to the second quarter 2011 and earlier periods
recognized in Devices & Services Other and a positive impact from foreign
currency exchange hedging.

Gross Margin
On both a year-on-year and sequential basis, the increase in our Devices &
Services gross margin in the second quarter 2011 was driven by the recognition
of approximately EUR 430 million of IPR royalty income related to the second
quarter 2011 and earlier periods, recognized in Devices & Services Other,
partially offset by gross margin declines in both Smart Devices and Mobile
Phones and a negative impact from foreign currency hedging.

Operating Expenses
Devices & Services non-IFRS research and development expenses decreased 9% year-
on-year  and 10% sequentially due to declines in Devices & Services Other and
Smart Devices research and development expenses, partially offset by an increase
in Mobile Phones research and development expenses. Devices & Services Other
includes common research and development expenses. The decreases in Devices &
Services Other and Smart Devices research and development expenses were due
primarily to a focus on priority projects and cost controls. The increase in
Mobile Phones research and development expenses was due primarily to investments
to accelerate product development to bring new innovations to the market faster
and at lower price-points, partially offset by a focus on priority projects and
cost controls.

Devices & Services non-IFRS sales and marketing expenses decreased 3% year-on-
year due to lower spending on sales programs and marketing programs. Devices &
Services non-IFRS sales and marketing expenses increased 6% sequentially driven
by higher spending on marketing programs, while spending on sales programs was
flat.

Devices & Services non-IFRS administrative and general expenses decreased 12%
year-on-year and sequentially, driven by a strong focus on near-term cost
controls.

Devices & Services non-IFRS other income and expense had a slight negative
impact on profitability in the second quarter 2011 both year-on-year and
sequentially due to a variety of individually insignificant changes.  Reported
other income and expense was significantly adversely impacted in the second
quarter 2011 primarily as a result of restructuring related expenses discussed
below, which were recognized in Devices & Services Other.

Cost Reduction Activities
Nokia is accelerating its plans to reduce its Devices & Services non-IFRS
operating expenses and now targets to exceed its previous Devices & Services
non-IFRS operating expense reduction target of EUR 1 billion for the full year
2013, compared to the full year 2010 Devices & Services non-IFRS operating
expenses of EUR 5.65 billion. This reduction is expected to come from a variety
of different sources and initiatives, including a reduction in the number of
employees and normal personnel attrition, a reduction in the use of outsourced
professionals, reductions in facility costs, and various improvements in
efficiencies.

Nokia's cost reduction activities include a strategic collaboration with
Accenture to outsource Nokia's Symbian software development and support
activities to Accenture. Approximately 2 800 Nokia employees are expected to
transfer to Accenture at closing, which is expected to take place in the early
part of October 2011. In addition, we also announced plans to reduce our global
workforce by about 4 000 employees by the end of 2012, as well as plans to
consolidate the company's research and product development sites so that each
site has a clear role and mission.

During the second quarter 2011, Devices & Services recognized charges related to
our cost reduction activities of EUR 572 million, and Nokia expects to recognize
additional charges in future quarters.

Smart Devices

The following chart sets out a summary of the results for our Smart Devices
business unit for the periods indicated, as well as the year-on-year and
sequential growth rates.

+------------------------------------------------------------------------------+
|SMART DEVICES RESULTS SUMMARY                                                 |
+--------------------------------+-------+-------+----------+-------+----------+
|                                |Q2/2011|Q2/2010|YoY Change|Q1/2011|QoQ Change|
+--------------------------------+-------+-------+----------+-------+----------+
|Net sales (EUR millions)1       |  2 368|  3 503|      -32%|  3 528|      -33%|
+--------------------------------+-------+-------+----------+-------+----------+
|Smart Devices volume (million   |       |       |          |       |          |
|units)                          |   16.7|   25.2|      -34%|   24.2|      -31%|
+--------------------------------+-------+-------+----------+-------+----------+
|Smart Devices ASP (EUR)         |    142|    139|        2%|    146|       -3%|
+--------------------------------+-------+-------+----------+-------+----------+
|Gross margin (%)                |  25.7%|  32.2%|          |  29.8%|          |
+--------------------------------+-------+-------+----------+-------+----------+
|Operating expenses (EUR         |       |       |          |       |          |
|millions)                       |    752|    848|      -11%|    835|      -10%|
+--------------------------------+-------+-------+----------+-------+----------+
|Contribution margin (%)         |  -6.2%|   8.1%|          |   6.2%|          |
+--------------------------------+-------+-------+----------+-------+----------+

Note 1: Does not include IPR royalty income. IPR royalty income is recognized in
Devices & Services Other net sales.

Net Sales
Smart Devices net sales decreased both year-on-year and sequentially in the
second quarter 2011 primarily due to significantly lower volumes and, to a
lesser extent, lower ASP.

Volume
The year-on-year and sequential decreases in our Smart Devices volumes were
driven by the strong momentum of competing smartphone platforms relative to our
Symbian devices, particularly in Europe and China, as well as pricing tactics by
certain competitors. In addition, the sequential decrease in our Smart Devices
volumes was driven by distributors and operators purchasing fewer of our
smartphones during the second quarter 2011 as they reduced their inventories of
those devices which were slightly above normal levels at the end of the first
quarter 2011, particularly in China.

Average Selling Price
Smart Devices ASP increased year-on-year driven by the shipment of new Symbian
devices, partially offset by pressure from competing smartphone platforms,
tactical pricing actions, and price aggressive competitors.

Smart Devices ASP decreased sequentially driven by pressure from competing
smartphone platforms, tactical pricing actions, and price aggressive
competitors, partially offset by the shipment of new Symbian devices.

Gross Margin
The year-on-year and sequential declines in our Smart Devices gross margin in
the second quarter 2011 were driven by lower volumes, greater price erosion than
cost erosion, and tactical pricing actions for specific products due to the
competitive environment, partially offset by a gross margin benefit due to lower
deferral of revenue related to map services sold in combination with devices.

Mobile Phones

The following chart sets out a summary of the results for our Mobile Phones
business unit for the periods indicated, as well as the year-on-year and
sequential growth rates.

+------------------------------------------------------------------------------+
|MOBILE PHONES RESULTS SUMMARY                                                 |
+--------------------------------+-------+-------+----------+-------+----------+
|                                |Q2/2011|Q2/2010|YoY Change|Q1/2011|QoQ Change|
+--------------------------------+-------+-------+----------+-------+----------+
|Net sales (EUR millions)1       |  2 551|  3 190|      -20%|  3 407|      -25%|
+--------------------------------+-------+-------+----------+-------+----------+
|Mobile Phones volume (million   |       |       |          |       |          |
|units)                          |   71.8|   85.8|      -16%|   84.3|      -15%|
+--------------------------------+-------+-------+----------+-------+----------+
|Mobile Phones ASP (EUR)         |     36|     37|       -3%|     40|      -10%|
+--------------------------------+-------+-------+----------+-------+----------+
|Gross margin (%)                |  25.1%|  27.8%|          |  27.9%|          |
+--------------------------------+-------+-------+----------+-------+----------+
|Operating expenses (EUR million)|    420|    374|       12%|    386|        9%|
+--------------------------------+-------+-------+----------+-------+----------+
|Contribution margin (%)         |   8.6%|  16.1%|          |  16.5%|          |
+--------------------------------+-------+-------+----------+-------+----------+

Note 1: Does not include IPR royalty income. IPR royalty income is recognized in
Devices & Services Other net sales.

Net Sales
On a year-on-year basis, our Mobile Phones net sales in the second quarter 2011
decreased primarily due to lower volumes and, to a less extent, lower ASP. On a
sequential basis, our Mobile Phones net sales decreased due to lower volumes and
lower ASP.

Volume
The year-on-year and sequential declines in our Mobile Phones volumes were
driven by distributors and operators purchasing fewer of our mobile phones
during the second quarter 2011 as they reduced their inventories of those
devices which were slightly above normal levels at the end of the first quarter
2011.  In addition, our lack of Dual SIM phones, a growing part of the market,
until late in the second quarter 2011 adversely impacted our Mobile Phones
volumes during that quarter. Mobile Phones volumes were also adversely affected
by continued pressure from a variety of price aggressive competitors.

Average Selling Price
The year-on-year and sequential declines in our Mobile Phones ASP in the second
quarter 2011 were driven by a recalibration of our prices as general price
competition across all price categories increased following a relatively benign
pricing environment over the previous three quarters. On a year-on-year and
sequential basis, Mobile Phones ASP was also negatively impacted by a product
mix shift towards lower-priced mobile phones, reflecting the market trend
towards increasingly affordable smartphones. This was moderated somewhat on a
year-on-year basis by the solid performance of QWERTY products in Mobile Phones'
portfolio.

Gross Margin
The year-on-year decline in our Mobile Phones gross margin was primarily due to
general declines across the majority of the portfolio, partially offset by the
strong performance of certain new products such as the Nokia C3, C1-01, C2-01,
and X2-00.  Gross margin was negatively impacted due to greater price erosion
than cost erosion across the portfolio, driven by a recalibration of our prices
in the second quarter of 2011 following a relatively benign pricing environment
over the previous three quarters. Lower volumes also contributed to the gross
margin decline.

The sequential decline in our Mobile Phones gross margin was primarily due to
greater price erosion than cost erosion across the portfolio, driven by a
recalibration of our prices following a relatively benign pricing environment
over the previous three quarters. In addition, the gross margin was negatively
impacted by lower volumes and tactical pricing actions for specific products due
to the competitive environment.

NAVTEQ

On June 22, 2011, we announced plans to create a new Location & Commerce
business which will combine NAVTEQ and Nokia's social location services
operations from Devices & Services. The Location & Commerce business will be an
operating and reportable segment beginning October 1, 2011. In addition to a
broad portfolio of products and services for the wider internet ecosystem, the
Location & Commerce business will create integrated social location offerings in
support of Nokia's strategic goal in smartphones, including Nokia products with
Windows Phone, as well as support for bringing the internet to the next billion.

The following chart sets out a summary of the results for NAVTEQ for the periods
indicated, as well as the year-on-year and sequential growth rates.

+------------------------------------------------------------------------------+
|NAVTEQ RESULTS SUMMARY                                                        |
+--------------------------------+-------+-------+----------+-------+----------+
|                                |Q2/2011|Q2/2010|YoY Change|Q1/2011|QoQ Change|
+--------------------------------+-------+-------+----------+-------+----------+
|Net sales (EUR millions)        |    245|    252|       -3%|    232|        6%|
+--------------------------------+-------+-------+----------+-------+----------+
|Non-IFRS gross margin (%)       |  82.9%|  81.4%|          |  84.1%|          |
+--------------------------------+-------+-------+----------+-------+----------+
|Non-IFRS operating expenses (EUR|       |       |          |       |          |
|millions)                       |    151|    153|       -1%|    142|        6%|
+--------------------------------+-------+-------+----------+-------+----------+
|Non-IFRS operating margin (%)   |  21.5%|  19.8%|          |  23.3%|          |
+--------------------------------+-------+-------+----------+-------+----------+



Net Sales
The year-on-year decrease in NAVTEQ net sales was primarily driven by changes in
the foreign currency exchange rate and lower sales of map licenses to mobile
device customers, partially offset by higher sales of map licenses to vehicle
customers due to higher consumer uptake of vehicle navigation systems.
Sequentially, the increase in NAVTEQ net sales was primarily driven by
seasonally higher sales in all customer categories except for mobile devices. At
constant currency, NAVTEQ net sales would have increased 1% year-on-year and 9%
sequentially.

Gross Margin
On a year-on-year basis, the increase in NAVTEQ non-IFRS gross margin was
primarily due to reduced royalty payments to data suppliers. Sequentially, the
decline in NAVTEQ non-IFRS gross margin was primarily due to the annual reset of
a royalty contract with a data supplier.

Operating Expenses
NAVTEQ non-IFRS research and development expenses were flat year-on-year driven
by increased spending on the development of location content, offset by changes
in foreign currency exchange rates. NAVTEQ non-IFRS research and development
expenses increased 4% sequentially driven by the timing of projects and
increased spending on the development of location content.

NAVTEQ non-IFRS sales and marketing expenses decreased 6% year-on-year driven by
changes in foreign currency exchange rates. NAVTEQ non-IFRS sales and marketing
expenses increased 10% sequentially driven by seasonal increases in marketing
expenses related to map update marketing campaigns.

NAVTEQ non-IFRS administrative and general expenses were flat year-on-year
driven by changes in foreign currency exchange rates and lower occupancy costs,
offset by costs related to the forming of the planned Location & Commerce
business. NAVTEQ non-IFRS administrative and general expenses increased 13%
sequentially driven by costs related to the forming of the planned Location &
Commerce business.

Nokia Siemens Networks

Nokia Siemens Networks operating results for the second quarter 2011 reflect the
inclusion of the acquired Motorola Solutions networks assets from April
30, 2011. Accordingly, the results of Nokia Siemens Networks for the second
quarter 2011 are not directly comparable to its results for prior periods.

The following chart sets out a summary of the results for Nokia Siemens Networks
for the periods indicated, as well as the year-on-year and sequential growth
rates.

+------------------------------------------------------------------------------+
|NOKIA SIEMENS NETWORKS RESULTS SUMMARY                                        |
+--------------------------------+-------+-------+----------+-------+----------+
|                                |Q2/2011|Q2/2010|YoY Change|Q1/2011|QoQ Change|
+--------------------------------+-------+-------+----------+-------+----------+
|Net sales (EUR millions)        |  3 642|  3 039|       20%|  3 171|       15%|
+--------------------------------+-------+-------+----------+-------+----------+
|Non-IFRS gross margin (%)       |  26.6%|  30.8%|          |  26.9%|          |
+--------------------------------+-------+-------+----------+-------+----------+
|Non-IFRS operating expenses (EUR|       |       |          |       |          |
|millions)                       |    931|    898|        4%|    852|        9%|
+--------------------------------+-------+-------+----------+-------+----------+
|Non-IFRS operating margin (%)   |   1.1%|   1.7%|          |   0.1%|          |
+--------------------------------+-------+-------+----------+-------+----------+



Net Sales
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                          |
+----------------------+---------+---------+------------+---------+------------+
| EUR millions         | Q2/2011 | Q2/2010 | YoY Change | Q1/2011 | QoQ Change |
+----------------------+---------+---------+------------+---------+------------+
| Europe               |   1 122 |   1 136 |        -1% |   1 001 |        12% |
+----------------------+---------+---------+------------+---------+------------+
| Middle East & Africa |     389 |     400 |        -3% |     307 |        27% |
+----------------------+---------+---------+------------+---------+------------+
| Greater China        |     403 |     357 |        13% |     322 |        25% |
+----------------------+---------+---------+------------+---------+------------+
| Asia-Pacific         |     973 |     594 |        64% |     988 |        -2% |
+----------------------+---------+---------+------------+---------+------------+
| North America        |     311 |     181 |        72% |     169 |        84% |
+----------------------+---------+---------+------------+---------+------------+
| Latin America        |     444 |     371 |        20% |     384 |        16% |
+----------------------+---------+---------+------------+---------+------------+
| Total                |   3 642 |   3 039 |        20% |   3 171 |        15% |
+----------------------+---------+---------+------------+---------+------------+



Nokia Siemens Networks completed the acquisition of Motorola Solutions' networks
assets on April 29, 2011.

As of April 30, 2011, responsibility for supporting customers of Motorola
Solutions' GSM, CDMA, WCDMA, WiMAX and LTE products and services was transferred
to Nokia Siemens Networks. Approximately 6900 employees are transferring to
Nokia Siemens Networks, as well as responsibility for supporting 50 operators
across 52 countries. The acquisition covers a number of research and development
facilities, including sites in the United States, China, Russia, India and the
UK. The acquisition is expected to strengthen Nokia Siemens Networks' market
position in key geographic markets, in particular North America and Japan, as
well as with some of the world's major service providers.

The 20% year-on-year increase in Nokia Siemens Networks net sales in the second
quarter 2011 was primarily driven by growth in both the product and services
businesses in most regions, as well as the contribution from the acquired
Motorola networks assets. Excluding the acquired Motorola networks assets, Nokia
Siemens Networks net sales would have increased 13% year-on-year.

The 15% sequential increase in Nokia Siemens Networks net sales in the second
quarter 2011 was driven by a seasonally stronger infrastructure market in most
regions as well as the contribution from the acquired Motorola networks assets.
Excluding the acquired Motorola networks assets, Nokia Siemens Networks net
sales would have increased 8% sequentially.

At constant currency, Nokia Siemens Networks net sales would have increased 21%
year-on-year and increased 16% sequentially.

Gross Margin
The lower year-on-year Nokia Siemens Networks non-IFRS gross margin in the
second quarter 2011 was primarily due to lower software sales, an unfavorable
regional net sales mix and new network infrastructure modernization projects in
certain regions. On a year-on-year basis, the acquired Motorola networks assets
had a positive impact on the non-IFRS gross margin of approximately 30 basis
points.

The lower sequential Nokia Siemens Networks non-IFRS gross margin in the second
quarter 2011 was primarily due to the negative impact of certain network
modernization projects, which more than offset the improved regional mix and the
positive impact of approximately 30 basis points from the acquired Motorola
networks assets.

Operating Expenses
Excluding the acquired Motorola networks assets, Nokia Siemens Networks non-IFRS
operating expenses would have decreased 6% year-on-year and decreased 1%
sequentially.

Nokia Siemens Networks non-IFRS research and development expenses increased 6%
year-on-year and 9% sequentially. Excluding the acquired Motorola networks
assets, Nokia Siemens Networks non-IFRS research & development expenses would
have decreased by 6% year-on-year and 3% sequentially driven by ongoing cost
initiatives which more than offset increased investments in strategic
initiatives in radio technology.

Nokia Siemens Networks non-IFRS sales and marketing expenses decreased 1% year-
on-year and increased 7% sequentially. Excluding the acquired Motorola networks
assets, Nokia Siemens Networks non-IFRS sales and marketing expenses would have
decreased 6% year-on-year and increased 2% sequentially. The year-on-year
decline was driven by lower pre-sales activities as well as ongoing cost savings
initiatives. The sequential increase was driven primarily by pre-sales
activities.

Nokia Siemens Networks non-IFRS administrative and general expenses increased
7% year-on-year and 15% sequentially. Excluding the acquired Motorola networks
assets, Nokia Siemens Networks non-IFRS administrative and general expenses
would have decreased 2% year-on-year and increased 4% sequentially. The year-on-
year decline was driven by ongoing cost initiatives. On a sequential basis, the
increase was primarily due to higher revenues.

Nokia Siemens Networks non-IFRS other income and expense decreased year-on-year
and was flat sequentially due to a variety of individually insignificant
changes.

Operating Margin
The lower year-on-year Nokia Siemens Networks non-IFRS operating margin in the
second quarter 2011 primarily reflected the lower gross margin and increased
operating expenses and integration costs related to the acquired Motorola
networks assets.  Sequentially, the increase in Nokia Siemens Networks non-IFRS
operating margin reflected the higher net sales, offset to some extent by
increased operating expenses and integration costs related to the acquired
Motorola networks assets.

On a year-on-year and sequential basis, the acquired Motorola networks assets
had a negative impact on the non-IFRS operating margin of approximately 50 basis
points. The impact would have been positive excluding integration-related items.

Since the end of the quarter, Nokia Siemens Networks has confirmed that a review
for assessing private equity interest in the company had been completed. The two
current shareholders, Nokia and Siemens, believe they are in the best position
to further enhance the value of Nokia Siemens Networks and have thus reaffirmed
their commitment to the company. Together with Siemens, Nokia is evaluating
alternatives that would create an industry leading company with best-in-class
profitability and which is viable on a stand-alone basis.

SECOND QUARTER 2011 OPERATING HIGHLIGHTS

Nokia
- We announced the appointment of Michael Halbherr as Executive Vice President
to lead the new Location & Commerce business, which will combine NAVTEQ and
Nokia's social location services operations from Devices & Services as of
October 1, 2011. As of July 1, Halbherr is a member of the Nokia Leadership
Team, reporting to CEO Stephen Elop. The Location & Commerce business will
develop a new class of integrated social location products and services for
consumers, as well as platform services and local commerce services for device
manufacturers, application developers, internet services providers, merchants,
and advertisers.
- To deliver on its new strategy, Nokia announced plans to align its global
workforce and consolidate site operations, including plans to reduce its global
workforce by about 4 000 employees by the end of 2012, with the majority of
reductions in Denmark, Finland and the UK.

Devices & Services
- We signed a definitive agreement with Microsoft on a partnership that will
result in a new global mobile ecosystem, utilizing the very complementary assets
of both companies.
- We announced that we have signed a patent license agreement with Apple. The
agreement resulted in settlement of all patent litigation between the companies,
including the withdrawal by Nokia and Apple of their respective complaints to
the US International Trade Commission.
- We started shipping the Nokia E6 and the Nokia X7, two new smartphones aimed
at business people and entertainment enthusiasts respectively. The two devices
are the first Nokia smartphones running on Symbian Anna, the latest Symbian
software, with new icons and usability enhancements such as improved text input,
a faster browser and refreshed Ovi Maps.
- We started shipping Nokia N8s, E7s, C7s and C6-01s with the new Symbian Anna
software, and announced that, by the end of August, existing owners of these
devices can also download Symbian Anna.
- Nokia and Accenture finalized an agreement for Nokia to outsource Symbian
software development and support activities to Accenture. Under the agreement,
Accenture will provide Symbian based software development and support services
to Nokia through 2016. Approximately 2 800 Nokia employees located in China,
Finland, India, United Kingdom and the United States, are expected to transfer
to Accenture at closing, which is expected to take place in the early part of
October, 2011.
- Nokia introduced the Nokia N9, a pure touch smartphone. The outcome of our
MeeGo efforts, the Nokia N9 comes in a unibody polycarbonate design that enables
superior antenna performance for better reception, better voice quality and
fewer dropped calls; and a smarter all-round experience with NFC for sharing and
pairing to accessories.  The Nokia N9 also introduces an innovative new design
where the home key - typically located at the bottom of the device - is replaced
by a simple gesture: a swipe.
- We started shipping the Nokia C2-00, our first Dual SIM mobile phone which
enables users to use two SIM cards in the same device, meaning calls and text
messages can come to either number when the phone is on. The Nokia C2-00 is a
Series 40-based device.
- We started shipping the Dual SIM Nokia X1-01, a Series 30-based phone
optimized for music playback through a powerful built-in speaker.
- We further expanded our Dual SIM portfolio with the introduction of the Nokia
C2-03, which has unique Dual SIM capabilities. The device enables users to
personalize up to five SIM cards, while it also features our Easy Swap
technology which makes switching SIM cards simple and quick.
- Along with two other new models we introduced in the quarter - the Nokia C2-
02 and Nokia C2-06 - the Nokia C2-03 features the new Nokia Browser, which is
designed to provide a more personal and affordable internet experience. The
Nokia Browser, which is available in 87 languages, compresses data and can thus
reduce the cost of surfing the web. All three new models also feature Nokia Maps
for Series 40, which provides an advanced, cost-efficient maps experience. The
new Nokia Maps for Series 40 is similar to that available on our smartphones in
that people can view maps and plan routes when the phone is in offline mode.
- We launched photorealistic 3D models of certain metropolitan areas for the web
version of Ovi Maps.  This immersive and free feature adds a new dimension to
the Ovi Maps experience and enables people to explore places in a completely
different way.
- Store continued to see increased downloads of applications and content during
the quarter. By early July 2011, the Store was attracting more than 6.5 million
downloads a day, compared with up to 5 million a day reported in April 2011,
boosted by downloads on the latest Symbian devices. Increased demand for apps
from the approximately 225 million-strong Symbian consumer base has seen the
Store catalog grow to more than 50 000 apps.
- We announced plans to make Qt core to our mobile phones strategy. For
developers, this means a dramatic increase in the distribution and monetization
opportunities for Qt apps.
- We announced the release of Qt SDK 1.1 offering one integrated development
environment for creating both consumer applications on Nokia's Symbian platform
as well as for desktop applications such as Windows 7, Mac OSX and Linux.  Using
the Qt SDK to build their apps, developers have a complete, easy-to-use tool
designed to reduce application creation time for Nokia touch-screen devices.

NAVTEQ
- NAVTEQ launched its LocationPoint mobile ad network in South Africa.
- NAVTEQ announced the availability of real-time traffic in Russia and United
Arab Emirates. The UAE launch coincided with the data being made available on
Nokia smartphones.
- NAVTEQ announced it is supplying map data for new GPS-enabled digital cameras
from Fujifilm and Olympus Imaging.
- NAVTEQ previewed its TPEG-based traffic services which will significantly
reduce costs of delivering traffic and other dynamic data.
- NAVTEQ expanded its presence in India with the opening of a second production
center and the launch of NAVTEQ Natural Guidance for India.

Nokia Siemens Networks
- Nokia Siemens Networks completed the acquisition of certain wireless network
infrastructure assets of Motorola Solutions, paying USD 975 million in cash, on
April 29, 2011. The acquisition is expected to strengthen the company's position
in North America and Japan, adding approximately 6 900 employees across 52
countries.
- Nokia Siemens Networks announced several key mobile broadband deals, including
a LTE roll-out for LG U+ in Korea, HSPA+ as part of 3G modernization and
expansion for Celcom in Klang Valley, Malaysia, as well as 3G/HSPA network
equipment and related turnkey services for TelCell in the Netherlands Antilles.
The company signed a system integration deal with MegaFon to build a country-
wide IP mobile backhaul network in Russia and an exclusive packet core deal with
Optus in Australia. In addition, FASTWEB, an Italian broadband provider,
selected Nokia Siemens Networks and Juniper Networks to build additional network
capacity and deliver a Multiservice IP backbone.
- SK Telecom in Korea selected Nokia Siemens Networks to provide a 100G-ready
optical network system and INOVENTICA, a Russian infrastructure service
provider, will use the company's DWDM optical transport network to offer cloud
computing services.
- Nokia Siemens Networks announced it has invested in ClariPhy Inc., a leading
U.S.-based semiconductor developer for next-generation platforms.
- In services, Nokia Siemens Networks announced the start of operations for its
Global Network Operations Center (GNOC) in Sao Paulo, Brazil. In China, Shanghai
Unicom awarded the company a five-year contract for network maintenance
services. China Unicom's subsidiary in Anhui province will deploy Nokia Siemens
Networks' Energy Solutions to reduce by 20% total mobile base station site power
consumption.
- In the customer experience management field, Nokia Siemens Networks expanded
its portfolio with CEM 2.0, which helps operators fully utilize data to improve
the customer experience and their business results. The company announced Zain
Kuwait is now deploying two CEM platforms, Serve atOnce Traffica and Serve
atOnce Intelligence.
- Nokia Siemens Networks has signed a contract with Yutong Bus in China to
provide a machine-to-machine (M2M) service platform and develop telematics
applications based on a cost efficient Software-as-a-Service (SaaS) model.
- Nokia Siemens Networks has expanded its Liquid Radio architecture with the
launch of a new, high power radio module for its Flexi Multiradio Base Station
family at CommunicAsia 2011 in Singapore.

For more information on the operating highlights mentioned above, please refer
to related press announcements at the following links: www.nokia.com/press,
www.navteq.com/about/press.html, www.nokiasiemensnetworks.com/press

FORWARD-LOOKING STATEMENTS
It should be noted that certain statements herein which are not historical facts
are forward-looking statements, including, without limitation, those regarding:
A) the expected plans and benefits of our strategic partnership with Microsoft
to combine complementary assets and expertise to form a global mobile ecosystem
and to adopt Windows Phone as our primary smartphone platform; B) the timing and
expected benefits of our new strategy, including expected operational and
financial benefits and targets as well as changes in leadership and operational
structure; C) the timing of the deliveries of our products and services; D) our
ability to innovate, develop, execute and commercialize new technologies,
products and services; E) expectations regarding market developments and
structural changes; F) expectations and targets regarding our industry volumes,
market share, prices, net sales and margins of products and services; G)
expectations and targets regarding our operational priorities and results of
operations; H) expectations and targets regarding collaboration and partnering
arrangements; I) the outcome of pending and threatened litigation; J)
expectations regarding the successful completion of acquisitions or
restructurings on a timely basis and our ability to achieve the financial and
operational targets set in connection with any such acquisition or
restructuring; and K) statements preceded by "believe," "expect," "anticipate,"
"foresee," "target," "estimate," "designed," "plans," "will" or similar
expressions. 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) our ability to succeed in creating a
competitive smartphone platform for high-quality differentiated winning
smartphones or in creating new sources of revenue through our partnership with
Microsoft; 2) the expected timing of the planned transition to Windows Phone as
our primary smartphone platform and the introduction of mobile products based on
that platform; 3) our ability to maintain the viability of our current Symbian
smartphone platform during the transition to Windows Phone as our primary
smartphone platform; 4) our ability to realize a return on our investment in
MeeGo and next generation devices, platforms and user experiences; 5) our
ability to build a competitive and profitable global ecosystem of sufficient
scale, attractiveness and value to all participants and to bring winning
smartphones to the market in a timely manner; 6) our ability to produce mobile
phones in a timely and cost efficient manner with differentiated hardware,
localized services and applications; 7) our ability to increase our speed of
innovation, product development and execution to bring new competitive
smartphones and mobile phones to the market in a timely manner; 8) our ability
to retain, motivate, develop and recruit appropriately skilled employees; 9) our
ability to implement our strategies, particularly our new mobile product
strategy; 10) the intensity of competition in the various markets where we do
business and our ability to maintain or improve our market position or respond
successfully to changes in the competitive environment; 11) our ability to
maintain and leverage our traditional strengths in the mobile product market if
we are unable to retain the loyalty of our mobile operator and distributor
customers and consumers as a result of the implementation of our new strategy or
other factors; 12) our success in collaboration and partnering arrangements with
third parties, including Microsoft; 13) the success, financial condition and
performance of our suppliers, collaboration partners and customers; 14) our
ability to source sufficient quantities of fully functional quality components,
subassemblies and software on a timely basis without interruption and on
favorable terms, including the disruption of production and/or deliveries from
any of our suppliers as a result of adverse conditions in the geographic areas
where they are located; 15) our ability to manage efficiently our manufacturing,
service creation, delivery and logistics without interruption; 16) our ability
to ensure the timely delivery of sufficient volumes of products that meet our
and our customers' and consumers' requirements and manage our inventory and
timely adapt our supply to meet changing demands for our products; 17) any
actual or even alleged defects or other quality, safety and security issues in
our products; 18) any actual or alleged loss, improper disclosure or leakage of
any personal or consumer data collected or made available to us or stored in or
through our products; 19) our ability to successfully manage costs, including
our ability to achieve targeted costs reductions and to effectively and timely
execute related restructuring measures, including personnel reductions; 20) our
ability to effectively and smoothly implement the new operational structure for
our devices and services business effective April 1, 2011; 21) the development
of the mobile and fixed communications industry and general economic conditions
globally and regionally; 22) exchange rate fluctuations, including, in
particular, fluctuations between the euro, which is our reporting currency, and
the US dollar, the Japanese yen and the Chinese yuan, as well as certain other
currencies; 23) our ability to protect the 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 and services; 24) 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;
25) the impact of changes in government policies, trade policies, laws or
regulations and economic or political turmoil in countries where our assets are
located and we do business; 26) any disruption to information technology systems
and networks that our operations rely on; 27) unfavorable outcome of
litigations; 28) allegations of possible health risks from electromagnetic
fields generated by base stations and mobile products and lawsuits related to
them, regardless of merit; 29) our ability to achieve targeted costs reductions
and increase profitability in Nokia Siemens Networks and to effectively and
timely execute related restructuring measures; 30) Nokia Siemens Networks'
ability to maintain or improve its market position or respond successfully to
changes in the competitive environment; 31) Nokia Siemens Networks' liquidity
and its ability to meet its working capital requirements; 32) whether Nokia
Siemens Networks is able to successfully integrate the acquired assets of
Motorola Solutions' networks business, retain existing customers of the acquired
business, cross-sell Nokia Siemens Networks' products and services to customers
of the acquired business and otherwise realize the expected synergies and
benefits of the acquisition; 33) Nokia Siemens Networks' ability to timely
introduce new products, services, upgrades and technologies; 34) Nokia Siemens
Networks' success in the telecommunications infrastructure services market and
Nokia Siemens Networks' ability to effectively and profitably adapt its business
and operations in a timely manner to the increasingly diverse service needs of
its customers; 35) developments under large, multi-year contracts or in relation
to major customers in the networks infrastructure and related services business;
36) the management of our customer financing exposure, particularly in the
networks infrastructure and related services business; 37) whether ongoing or
any additional governmental investigations into alleged violations of law by
some former employees of Siemens AG may involve and affect the carrier-related
assets and employees transferred by Siemens AG to Nokia Siemens Networks; 38)
any impairment of Nokia Siemens Networks customer relationships resulting from
ongoing or any additional governmental investigations involving the Siemens
carrier-related operations transferred to Nokia Siemens Networks; as well as the
risk factors specified on pages 12-39 of Nokia's annual report Form 20-F for the
year ended December 31, 2010 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 - July 21, 2011



Media and Investor Contacts:

Corporate Communications, tel. [phone]
Investor Relations Europe, tel. [phone]
Investor Relations US, tel. [phone]

Nokia plans to publish its third quarter 2011 results on October 20, 2011.

www.nokia.com











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