Nokia Q3 2009 net sales EUR 9.8 billion, non-IF...

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Nokia Siemens Networks non-cash asset impairments negatively impacted
reported EPS by EUR 0.29

Nokia Corporation
Interim Report
October 15, 2009 at 13:00 (CET +1)

The complete press release with tables is available at:


http://www.nokia.com/results/Nokia_results2009Q3e.pdf


+-------------------------------------------------------------------+
|                   |                                               |
|                   | Non-IFRS third quarter 2009 results1, 2, 3    |
|-------------------+-----------------------------------------------|
|                   |         |         |    YoY |         |    QoQ |
| EUR million       | Q3/2009 | Q3/2008 | Change | Q2/2009 | Change |
|-------------------+---------+---------+--------+---------+--------|
| Net sales         |   9 810 |  12 239 | -19.8% |   9 913 |  -1.0% |
|-------------------+---------+---------+--------+---------+--------|
|   Devices &       |         |         |        |         |        |
| Services          |   6 915 |   8 605 | -19.6% |   6 586 |   5.0% |
|-------------------+---------+---------+--------+---------+--------|
|   NAVTEQ          |     166 |     157 |   5.7% |     148 |  12.2% |
|-------------------+---------+---------+--------+---------+--------|
|   Nokia Siemens   |         |         |        |         |        |
| Networks          |   2 760 |   3 504 | -21.2% |   3 199 | -13.7% |
|-------------------+---------+---------+--------+---------+--------|
|                   |         |         |        |         |        |
|-------------------+---------+---------+--------+---------+--------|
| Operating profit  |     741 |   1 756 | -57.8% |     775 |  -4.4% |
|-------------------+---------+---------+--------+---------+--------|
|   Devices &       |         |         |        |         |        |
| Services          |     787 |   1 602 | -50.9% |     802 |  -1.9% |
|-------------------+---------+---------+--------+---------+--------|
|   NAVTEQ          |      43 |      29 |  48.3% |      19 | 126.3% |
|-------------------+---------+---------+--------+---------+--------|
|   Nokia Siemens   |         |         |        |         |        |
| Networks          |     -53 |     177 |        |       2 |        |
|-------------------+---------+---------+--------+---------+--------|
|                   |         |         |        |         |        |
|-------------------+---------+---------+--------+---------+--------|
| Operating margin  |    7.6% |   14.3% |        |    7.8% |        |
|-------------------+---------+---------+--------+---------+--------|
|   Devices &       |         |         |        |         |        |
| Services          |   11.4% |   18.6% |        |   12.2% |        |
|-------------------+---------+---------+--------+---------+--------|
|   NAVTEQ          |   25.9% |   18.5% |        |   12.8% |        |
|-------------------+---------+---------+--------+---------+--------|
|   Nokia Siemens   |         |         |        |         |        |
| Networks          |   -1.9% |    5.1% |        |    0.1% |        |
|-------------------+---------+---------+--------+---------+--------|
|                   |         |         |        |         |        |
|-------------------+---------+---------+--------+---------+--------|
| EPS, EUR Diluted  |    0.17 |    0.33 | -48.5% |    0.15 |  13.3% |
|-------------------+-----------------------------------------------|
|                   |                                               |
|                   | Reported third quarter 2009 results1, 3       |
|-------------------+-----------------------------------------------|
|                   |         |         |    YoY |         |    QoQ |
| EUR million       | Q3/2009 | Q3/2008 | Change | Q2/2009 | Change |
|-------------------+---------+---------+--------+---------+--------|
| Net sales         |   9 810 |  12 237 | -19.8% |   9 912 |  -1.0% |
|-------------------+---------+---------+--------+---------+--------|
|   Devices &       |         |         |        |         |        |
| Services          |   6 915 |   8 605 | -19.6% |   6 586 |   5.0% |
|-------------------+---------+---------+--------+---------+--------|
|   NAVTEQ          |     166 |     156 |   6.4% |     147 |  12.9% |
|-------------------+---------+---------+--------+---------+--------|
|   Nokia Siemens   |         |         |        |         |        |
| Networks          |   2 760 |   3 503 | -21.2% |   3 199 | -13.7% |
|-------------------+---------+---------+--------+---------+--------|
|                   |         |         |        |         |        |
|-------------------+---------+---------+--------+---------+--------|
| Operating profit  |    -426 |   1 469 |        |     427 |        |
|-------------------+---------+---------+--------+---------+--------|
|   Devices &       |         |         |        |         |        |
| Services          |     785 |   1 602 | -51.0% |     763 |   2.9% |
|-------------------+---------+---------+--------+---------+--------|
|   NAVTEQ          |     -68 |     -80 |        |    -100 |        |
|-------------------+---------+---------+--------+---------+--------|
|   Nokia Siemens   |         |         |        |         |        |
| Networks          |  -1 107 |      -1 |        |    -188 |        |
|-------------------+---------+---------+--------+---------+--------|
|                   |         |         |        |         |        |
|-------------------+---------+---------+--------+---------+--------|
| Operating margin  |   -4.3% |   12.0% |        |    4.3% |        |
|-------------------+---------+---------+--------+---------+--------|
|   Devices &       |         |         |        |         |        |
| Services          |   11.4% |   18.6% |        |   11.6% |        |
|-------------------+---------+---------+--------+---------+--------|
|   NAVTEQ          |  -41.0% |  -51.3% |        |  -68.0% |        |
|-------------------+---------+---------+--------+---------+--------|
|   Nokia Siemens   |         |         |        |         |        |
| Networks          |  -40.1% |    0.0% |        |   -5.9% |        |
|-------------------+---------+---------+--------+---------+--------|
|                   |         |         |        |         |        |
|-------------------+---------+---------+--------+---------+--------|
| EPS, EUR Diluted  |   -0.15 |    0.29 |        |    0.10 |        |
+-------------------------------------------------------------------+


Note 1 relating to NAVTEQ:  Nokia completed the acquisition of NAVTEQ
Corporation on July 10, 2008. Accordingly, NAVTEQ's results for the
third quarter 2008 are not directly comparable to those for the third
quarter 2009.

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, 14-16 and 18.

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 Q3 2009 and Q3 2008 can be found in the
tables on pages 11 and 14-18 of this press release. A reconciliation
of our Q2 2009 non-IFRS results can be found on pages 10 and 13-17 of
our Q2 2009 Interim Report of July 16, 2009.

Note 3:  Nokia reported net sales were EUR 28 996 million and
earnings per share (diluted) were EUR -0.02 for the period from
January 1 to September 30, 2009. Further information about the
results for the period from January 1 to September 30, 2009 can be
found in this press release on pages 10, 12, 19-20 and 22.

THIRD QUARTER 2009 HIGHLIGHTS
- Nokia net sales of EUR 9.8 billion, down 20% year on year and down
1% sequentially (down 19% and flat at constant currency).
- Devices & Services net sales of EUR 6.9 billion, down 20% year on
year and up 5% sequentially (down 20% and up 6% at constant
currency), and non-IFRS operating margin of 11.4% (18.6% in Q3 2008
and 12.2% in Q2 2009).
- Devices & Services gross margin of 30.9%, down from 34.0% in Q2
2009.
- Services net sales of EUR 148 million (billings of EUR 172
million). Due to the divestment of the security appliance business in
April 2009, services net sales are not directly comparable to prior
periods.
- Estimated industry mobile device volumes of 288 million units, down
7% year on year and up 7% sequentially.
- Nokia mobile device volumes of 108.5 million units, down 8% year on
year and up 5% sequentially.
- Nokia estimated mobile device market share of 38% in Q3 2009, at
the same level as in Q3 2008 and in Q2 2009.
- Nokia mobile device ASP of EUR 62, at the same level as in Q2 2009.
- NAVTEQ non-IFRS net sales of EUR 166 million, up 6% year on year
and up 12% sequentially, and non-IFRS operating margin of 25.9%
(18.5% in Q3 2008).
- Nokia Siemens Networks net sales of EUR 2.8 billion, down 21% year
on year and down 14% sequentially (down 20% and down 14% at constant
currency), and non-IFRS operating margin of -1.9% (5.1% in Q3 2008).
- Nokia operating cash flow of EUR 720 million.
- Total cash and other liquid assets of EUR 7.4 billion at the end of
Q3 2009.
- Nokia taxes were favorably impacted by country profit mix as well
as prior year tax benefits. If Nokia's estimated long-term tax rate
of 26% had been applied, non-IFRS EPS would have been approximately 2
Euro cents lower.

OLLI-PEKKA KALLASVUO, NOKIA CEO:
"The demand for mobile devices improved in many markets during Q3.
With the average selling price of our devices holding firm
quarter-on-quarter, our higher device volumes translated into
increased net sales in our Devices & Services business. Our volumes
and net sales were, however, somewhat constrained by component
shortages we encountered across the portfolio. I also want to
highlight the good operating expense management that helped the
segment deliver solid earnings.

The challenging competitive factors and market conditions in the
infrastructure and related services business necessitated non-cash
impairment charges at Nokia Siemens Networks. We continue to support
Nokia Siemens Networks actions to improve its performance."

INDUSTRY AND NOKIA OUTLOOK
- Nokia expects industry mobile device volumes in the fourth quarter
2009 to be up sequentially.
- Nokia expects its mobile device market share in the fourth quarter
2009 to be approximately at the same level sequentially.
- Nokia expects industry mobile device volumes to be approximately
1.12 billion units in 2009, down approximately 7% from approximately
1.21 billion units Nokia estimated for 2008. This is an update to
Nokia's earlier estimate of industry mobile device volumes declining
approximately 10% in 2009 from 2008 levels.
- Nokia expects its non-IFRS operating margin in Devices & Services
in the fourth quarter 2009 to be up by one percentage point or more
sequentially.
- Nokia and Nokia Siemens Networks now expect the mobile
infrastructure and fixed infrastructure and related services market
to decline approximately 5% in Euro terms in 2009, from 2008 levels.
This is an update to Nokia and Nokia Siemens Networks earlier
expected decline of approximately 10%.
- Nokia and Nokia Siemens Networks also now expect that Nokia Siemens
Networks market share will decline by more than previously expected
in 2009, compared with 2008. This is an update to Nokia and Nokia
Siemens Networks earlier expected moderate decline. Nokia and Nokia
Siemens Networks continue to see strong performance in its Services
business unit expected to be offset by declines in certain product
businesses.

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

The non-IFRS results exclusions
Q3 2009 - EUR 1 167 million consisting of:
- EUR 908 million impairment of goodwill in Nokia Siemens Networks
- EUR 29 million restructuring charge and other one-time items in
Nokia Siemens Networks
- EUR 117 million of intangible assets amortization and other
purchase price related items arising from the formation of Nokia
Siemens Networks
- EUR 111 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

Q3 2009 taxes - EUR 432 million valuation allowance for Nokia Siemens
Networks deferred tax assets impacting Nokia taxes

Q2 2009 - EUR 348 million (net) consisting of:
- EUR 22 million of impairment of intangible assets in Devices &
Services
- EUR 83 million restructuring charge in Devices & Services
- EUR 68 million gain on sale of security appliance business in
Devices & Services
- EUR 69 million restructuring charge and other one-time items in
Nokia Siemens Networks
- EUR 121 million of intangible assets amortization and other
purchase price related items arising from the formation of Nokia
Siemens Networks
- EUR 119 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

Q3 2008 - EUR 287 million consisting of:
- EUR 59 million restructuring charge and other one-time items in
Nokia Siemens Networks
- EUR 119 million of intangible asset amortization and other purchase
price accounting related items
arising from the formation of Nokia Siemens Networks
- EUR 109 million of intangible asset amortization and other purchase
price accounting related items arising from the acquisition of NAVTEQ

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 third quarter 2009 net sales decreased 20% to EUR 9.8
billion, compared with EUR 12.2 billion in the third quarter 2008. At
constant currency, Group net sales would have decreased 19% year on
year.

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 THIRD QUARTER 2009 NET SALES, REPORTED & CONSTANT CURRENCY1 |
|-------------------------------------------------------------------|
|                           |       Q3/2009 vs. |       Q3/2009 vs  |
|                           |    Q3/2008 Change |   Q2/2009  Change |
|---------------------------+-------------------+-------------------|
| Group net sales -         |                   |                   |
| reported                  |              -20% |               -1% |
|---------------------------+-------------------+-------------------|
| Group net sales -         |                   |                   |
| constant currency1        |              -19% |                0% |
|---------------------------+-------------------+-------------------|
|                           |                   |                   |
|---------------------------+-------------------+-------------------|
| Devices & Services net    |                   |                   |
| sales - reported          |              -20% |                5% |
|---------------------------+-------------------+-------------------|
| Devices & Services net    |                   |                   |
| sales - constant          |                   |                   |
| currency1                 |              -20% |                6% |
|---------------------------+-------------------+-------------------|
|                           |                   |                   |
|---------------------------+-------------------+-------------------|
| Nokia Siemens Networks    |                   |                   |
| net sales - reported      |              -21% |              -14% |
|---------------------------+-------------------+-------------------|
| Nokia Siemens Networks    |                   |                   |
| net sales - constant      |                   |                   |
| currency1                 |              -20% |              -14% |
|-------------------------------------------------------------------|
| 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 third quarter 2009 reported operating loss was EUR 426
million, compared with an operating profit of EUR 1.5 billion in the
third quarter 2008. Nokia's third quarter 2009 non-IFRS operating
profit decreased 58% to EUR 741 million, compared with EUR 1.8
billion in the third quarter 2008. Nokia's third quarter 2009
reported operating margin was -4.3% (12.0%). Nokia's third quarter
2009 non-IFRS operating margin was 7.6% (14.3%).

Operating cash flow for the third quarter 2009 was EUR 720 million,
compared with EUR 1.3 billion in the third quarter 2008. Total cash
and other liquid assets were EUR 7.4 billion at September 30, 2009,
compared with EUR 7.2 billion at September 30, 2008. At September 30,
2009, Nokia's net debt-equity ratio (gearing) was -15%, compared with
-18% at September 30, 2008.

Devices & Services
In the third quarter 2009, the total mobile device volumes of our
Devices & Services group were 108.5 million units, representing a
decline of 8% year on year and a 5% increase sequentially. The
overall industry mobile device volumes for the same period were 288
million units based on Nokia's preliminary estimate, representing a
7% year on year decrease and a 7% sequential increase. The lower
device volumes year on year for Nokia and the industry continued to
be driven by the negative impact of the deteriorated global economic
conditions. The sequential industry device volume increase primarily
reflected an improved demand environment for mobile devices. In
addition, Nokia's device volumes for the third quarter 2009 were
somewhat constrained by component shortages across the portfolio,
which are expected to continue to some degree in the fourth quarter
2009.

Of the total industry mobile device volumes, converged mobile device
industry volumes in the third quarter 2009 were 47.0 million units,
based on Nokia's preliminary estimate, compared with an estimated
44.2 million units in the third quarter 2008 and 41.0 million units
in the second quarter 2009. Our own converged mobile device volumes
were 16.4 million units in the third quarter 2009, compared with 15.5
million units in the third quarter 2008 and 16.9 million units in the
second quarter 2009. Nokia's share of the converged mobile device
market was an estimated 35% in the third quarter 2009, at the same
level as in the third quarter 2008 and down from 41% in the second
quarter 2009. We shipped 4.5 million Nokia Nseries and 4.4 million
Nokia Eseries devices during the third quarter 2009, down from the
combined 9.3 million Nseries and Eseries devices we shipped in the
second 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)   | Q3/2009 | Q3/2008 | Change | Q2/2009 | Change |
|-------------------+---------+---------+--------+---------+--------|
| Europe            |    27.1 |    27.4 |  -1.1% |    23.3 |  16.3% |
|-------------------+---------+---------+--------+---------+--------|
| Middle East &     |         |         |        |         |        |
| Africa            |    19.6 |    21.5 |  -8.8% |    18.9 |   3.7% |
|-------------------+---------+---------+--------+---------+--------|
| Greater China     |    18.5 |    19.8 |  -6.6% |    18.6 |  -0.5% |
|-------------------+---------+---------+--------+---------+--------|
| Asia-Pacific      |    30.5 |    33.6 |  -9.2% |    30.3 |   0.7% |
|-------------------+---------+---------+--------+---------+--------|
| North America     |     3.1 |     4.5 | -31.1% |     3.2 |  -3.1% |
|-------------------+---------+---------+--------+---------+--------|
| Latin America     |     9.7 |    11.0 | -11.8% |     8.9 |   9.0% |
|-------------------+---------+---------+--------+---------+--------|
| Total             |   108.5 |   117.8 |  -7.9% |   103.2 |   5.1% |
+-------------------------------------------------------------------+


Based on our preliminary market estimate, Nokia's mobile device
market share for the third quarter 2009 was 38%, compared with 38% in
the third quarter 2008 and in the second quarter 2009. Our year on
year market share was higher in Europe, Latin America and Middle East
& Africa. This was offset by lower market share in Greater China,
Asia-Pacific and North America. Sequentially, our market share
declined in Greater China, Asia-Pacific, Middle East & Africa and
North America, but was offset by our increased market share in Europe
and Latin America.

Our mobile device average selling price (ASP) in the third quarter
2009 was EUR 62, down from EUR 72 in the third quarter 2008 and at
the same level as in the second quarter 2009. The year on year
decline was primarily due to a higher proportion of sales of lower
priced products as well as general price pressure. Sequentially, our
ASP benefited from new product shipments, offset however by general
price pressure.

Third quarter 2009 Devices & Services net sales declined 20% to EUR
6.9 billion, compared with EUR 8.6 billion in the third quarter 2008.
Devices & Services net sales were down year on year in all geographic
areas. At constant currency, Devices & Services net sales would have
decreased 20%. The net sales decline resulted primarily from lower
volumes, combined with the ASP decline, compared with the third
quarter 2008. Of our total Devices & Services net sales, services
contributed EUR 148 million in the third quarter 2009, representing
29% year on year growth and a 6% sequential growth. Nokia completed
the divestment of its security appliances business in April 2009 and
accordingly services net sales for the third and second quarter 2009
as well as for the prior periods are not directly comparable.

Beginning with the third quarter 2009, we are providing additional
sequential comparative information for our Devices & Services
business to reflect our product and solutions mode of operation and
performance. We are now providing total net sales for Devices &
Services divided into (i) net sales from smartphones and mobile
computer solutions; that is, net sales of converged mobile devices,
including the services and accessories sold with them, and (ii) net
sales from mobile phones and embedded services; that is, net sales of
Series 30 and Series 40-powered devices, including the services and
accessories sold with them. We are also providing ASPs for each of
these two categories of sales. Net sales from smartphones and mobile
computer solutions totaled EUR 3.1 billion in the third quarter 2009,
at the same level as in the second quarter 2009. The ASP for
smartphones and mobile computer solutions was EUR 190, up from EUR
182 in the second quarter 2009. Net sales from mobile phones and
embedded services totaled EUR 3.8 billion in the third quarter 2009,
compared with EUR 3.5 billion in the second quarter 2009. The ASP for
mobile phones and embedded services was EUR 41, at the same level as
in the second quarter 2009.

Devices & Services reported gross profit and non-IFRS gross profit
decreased 32% to EUR 2.1 billion, compared with EUR 3.1 billion in
the third quarter 2008, with a reported and non-IFRS gross margin of
30.9% (36.5%). The year on year gross margin decrease was primarily
due to higher cost of sales driven by a stronger Japanese Yen, as
well as general price pressure.

During the third quarter 2009, Devices & Services reported operating
profit decreased 51% to EUR 785 million, compared with EUR 1.6
billion in the third quarter 2008, with a reported operating margin
of 11.4% (18.6%). Devices & Services non-IFRS operating profit
decreased 51% to EUR 787 million, compared with EUR 1.6 billion in
the third quarter 2008, with a non-IFRS operating margin of 11.4%
(18.6%). The year on year decrease in non-IFRS operating profit for
the third quarter 2009 was due primarily to lower net sales and
higher cost of sales compared with the third quarter 2008. These
factors were somewhat mitigated by a reduction in our operating
expenses, compared to the third quarter 2008.

NAVTEQ
(Nokia completed the acquisition of NAVTEQ Corporation on July 10,
2008. Accordingly, NAVTEQ's results for the third quarter 2008 are
not directly comparable to those for the third quarter 2009.)

Third quarter 2009 NAVTEQ net sales increased 6% to EUR 166 million,
compared with EUR 156 million in the third quarter 2008. NAVTEQ
reported gross profit was EUR 146 million (EUR 138 million), with a
reported gross margin of 88.0% (88.5%). Non-IFRS gross profit was EUR
146 million (EUR 139 million), with a non-IFRS gross margin of 88.0%
(88.5%). NAVTEQ had a reported operating loss of EUR 68 million (EUR
80 million loss). The reported operating margin was -41.0% (-51.3%).
NAVTEQ non-IFRS operating profit was EUR 43 million (EUR 29 million),
with a non-IFRS operating margin of 25.9% (18.5%).

When Nokia assessed goodwill for impairment on its annual impairment
testing date in the fourth quarter 2008, Nokia concluded that a
reasonably possible change of 1% in the valuation assumptions for
long-term growth rate and pre-tax discount rate would give rise to an
impairment loss for NAVTEQ. Nokia conducted a review and update of
the assumptions used in the 2008 annual impairment testing analysis
and performed a sensitivity analysis on these assumptions to assess
the recoverability of NAVTEQ. This assessment resulted in no
indication of impairment for NAVTEQ. However, Nokia has once again
concluded that a reasonably possible change of 1% in the valuation
assumptions for long-term growth rate and pre-tax discount rate would
give rise to an impairment loss for NAVTEQ. Nokia continues to
evaluate the financial performance and future strategies of NAVTEQ as
well as market and economic conditions to assess the recoverability
of NAVTEQ's carrying amount. Nokia will conduct its annual goodwill
impairment testing in the fourth quarter 2009.

Nokia Siemens Networks
Third quarter 2009 net sales decreased 21% to EUR 2.8 billion,
compared with EUR 3.5 billion in the third quarter 2008, reflecting
challenging competitive factors and market conditions. At constant
currency, Nokia Siemens Networks net sales would have decreased 20%.
Of total Nokia Siemens Networks net sales, services contributed EUR
1.3 billion.

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       | Q3/2009 | Q3/2008 | Change | Q2/2009 | Change |
|-------------------+---------+---------+--------+---------+--------|
| Europe            |   1 062 |   1 358 | -21.8% |   1 209 | -12.2% |
|-------------------+---------+---------+--------+---------+--------|
| Middle East &     |         |         |        |         |        |
| Africa            |     387 |     424 |  -8.7% |     459 | -15.7% |
|-------------------+---------+---------+--------+---------+--------|
| Greater China     |     335 |     288 |  16.3% |     353 |  -5.1% |
|-------------------+---------+---------+--------+---------+--------|
| Asia-Pacific      |     567 |     894 | -36.6% |     648 | -12.5% |
|-------------------+---------+---------+--------+---------+--------|
| North America     |     127 |     150 | -15.3% |     208 | -38.9% |
|-------------------+---------+---------+--------+---------+--------|
| Latin America     |     282 |     389 | -27.5% |     322 | -12.4% |
|-------------------+---------+---------+--------+---------+--------|
| Total             |   2 760 |   3 503 | -21.2% |   3 199 | -13.7% |
+-------------------------------------------------------------------+


Nokia Siemens Networks reported gross profit decreased 28% to EUR 778
million, compared with EUR 1.1 billion in the third quarter 2008,
with a reported gross margin of 28.2% (30.8%). Nokia Siemens Networks
non-IFRS gross profit decreased 27% to EUR 794 million, compared with
EUR 1.1 billion in the third quarter
2008, with a non-IFRS gross margin of 28.8% (31.2%). The lower year
on year non-IFRS gross profit in the third quarter 2009 was due
primarily to lower year on year net sales.

Nokia Siemens Networks had a third quarter 2009 reported operating
loss of EUR 1 107 million, compared with an operating loss of EUR 1
million in the third quarter 2008, with an operating margin of -40.1%
(0.0%). The operating loss in the third quarter 2009 was primarily
driven by the EUR 908 million impairment of goodwill. Nokia Siemens
Networks non-IFRS operating loss was EUR 53 million in the third
quarter 2009, compared with a non-IFRS operating profit of EUR 177
million in the third quarter 2008, with a non-IFRS operating margin
of -1.9% (5.1%). The year on year decline in Nokia Siemens Networks
non-IFRS operating profit primarily reflected lower net sales.

Nokia recorded a charge to operating profit in the third quarter 2009
of EUR 908 million for the impairment of goodwill in Nokia Siemens
Networks. After the impairment charge Nokia no longer carries any
goodwill with regard to Nokia Siemens Networks. An additional charge
of EUR 432 million was recorded to tax expense to provide a valuation
allowance on Nokia Siemens Networks' deferred tax assets. The net
impact of the asset impairment charges after minority interest
totaled EUR 1 072 million, negatively impacting reported EPS by EUR
0.29.

The recoverability of the investment in Nokia Siemens Networks has
declined as a result of the decline in forecasted profits and cash
flows. The asset impairment charges are the result of an evaluation
of the historical and projected financial performance of Nokia
Siemens Networks, taking into consideration the challenging
competitive factors and market conditions in the infrastructure and
related services business, which have resulted in lower net sales
projections and which, in turn, have reduced the projected scale and
thus negatively impacted projected margins and profitability.

The recognition of a valuation allowance does not impact the validity
of the deferred tax assets and Nokia Siemens Networks retains the
possibility of recovering these assets if sufficient future taxable
profits become available.

Q3 2009 OPERATING HIGHLIGHTS
- Nokia announced the formation of Solutions, a new unit responsible
for driving Nokia's offering of solutions, with the aim of
integrating the mobile device, services and content into a unique and
compelling offering for the consumer. The unit formally started
operating on October 1, 2009.
- Nokia announced changes to its Group Executive Board, with Robert
Andersson leaving Nokia's Group Executive Board as of September 30,
2009 in connection with his transfer to new duties in Nokia's
Corporate Development unit from October 1, 2009; Alberto Torres
joining Nokia's Group Executive Board as of October 1, 2009 in
connection with his appointment as head of Solutions, and; Simon
Beresford-Wylie leaving the Group Executive Board on September 30,
2009 after stepping down as Chief Executive Officer of Nokia Siemens
Networks.
- Nokia announced that Rajeev Suri had been appointed as Chief
Executive Officer of Nokia Siemens Networks as of October 1, 2009.
- Nokia was named as the world's most sustainable technology company
according to the 2009-10 edition of the prestigious Dow Jones
Sustainability Indexes that went live during September. Already rated
for several years as the leader within the Europe and Communications
categories, this year Nokia was also chosen as "World Technology
Supersector Leader" making it number one across the entire global
technology sector.
- Nokia announced that a United States International Trade Commission
(ITC) judge issued an Initial Determination in favor of Nokia in the
action brought by InterDigital against Nokia. The judge's Initial
Determination is consistent with a previous judgment in the United
Kingdom that found several InterDigital patents not to be essential
to the UMTS mobile standard.

Devices & Services
- Nokia acquired certain assets of cellity, a mobile software company
that has developed a solution for aggregating address book data, as
well as certain assets of Plum Ventures, Inc, a privately held
company that develops and operates a cloud-based social media sharing
and messaging service for private groups. Nokia also acquired Dopplr
Oy, a privately-held mobile service provider for international
travelers. All three acquisitions enable Nokia to accelerate the
delivery of Ovi services and bring additional internet services
talent to its Services unit.
- Nokia announced Nokia Money, a new mobile financial service giving
mobile device users access to basic financial services. The service
is to be rolled out gradually to selected markets in early 2010 and
will be operated in cooperation with Obopay, a leading developer of
mobile payment solutions in which Nokia invested earlier this year.
- Nokia announced a global alliance with Microsoft to design and
market a suite of productivity applications for Nokia's range of
Symbian smartphones, starting with Nokia's business-optimized Eseries
range of devices.
- Nokia announced the Nokia N900, a handset that delivers
computer-grade performance in a compact QWERTY and touch form factor.
The Nokia N900 runs on Maemo, a desktop PC-like software architecture
based on the open source Linux software.
- Nokia announced the Nokia Booklet 3G, a new Windows 7-based
mini-laptop. The Nokia Booklet 3G is encased in an ultra-portable
aluminum chassis, runs for up to 12 hours on a single charge and has
a broad range of connectivity options.
- Nokia announced the Nokia N97 mini, a companion to the Nokia N97.
The Nokia N97 mini will be the first device to feature Ovi
lifecasting, an application developed together with Facebook that
enables people for the first time to publish their location and
status updates directly to their Facebook account from the home
screen of a mobile device.
- Nokia announced the Nokia X6, a powerful entertainment device with
32GB of on-board memory that, in select markets, will be available in
combination with Comes With Music, Nokia's 'all-you-can-eat-music'
offering. Nokia also announced the Nokia X3, an affordable music
device and the first Series 40-powered device enabled for Ovi Store,
Nokia's store for applications and content.
- Nokia announced the Nokia 5230, an affordable touch smartphone
that, in select markets, will also be available in combination with
Comes With Music.
- Nokia launched Comes With Music in Austria, the Netherlands and
South Africa during the quarter, with the offering now available on
17 Nokia devices across 12 countries altogether. Additionally, Nokia
launched Nokia Music Store in India during the quarter, with the
chain of digital music stores now localized for 22 countries.
- Nokia announced the Nokia 5800 Navigation Edition, a touch handset
preloaded with a lifetime of voice-guided Drive and Walk navigation
licenses for the user's region.
- Nokia announced and commenced shipments of the Nokia 3720 classic,
a rugged handset designed to resist water, dust and shock.
- Nokia Messaging, Nokia's consumer email service, continued to gain
traction among operators with six new agreements announced during the
quarter. Nokia Messaging is now available to Nokia users in more than
50 countries and approximately 1 million users are now registered.
Additionally, more than 2 million people have now activated an Ovi
Mail account. Ovi Mail is an email solution developed especially for
consumers in emerging markets.
- Nokia announced the Ovi SDK Beta, the Ovi Maps Player API for
mobile and Ovi Navigation Player API, enabling the creation of rich
applications for the web as well as the Symbian and Maemo platforms,
and which will be distributed through the Ovi Store. Ovi developer
tools are a key focus area as we continue to expand our services
offering for consumers and create opportunities for developers and
content providers.

NAVTEQ
- NAVTEQ announced the European availability of Motorway Junction
Objects, which enables navigation systems to display full 3D
animation of complex junctions, with coverage of over 6 000
locations.
- NAVTEQ significantly increased major city coverage for its India
map, now encompassing 84 cities.
- NAVTEQ announced that NAVTEQ Discover Cities(TM) reached a global
pedestrian navigation milestone of 100 cities with the addition of
Johannesburg.
- NAVTEQ acquired Acuity, a US-based company with a leading mobile
location-based advertising delivery platform. The acquisition
underscores NAVTEQ's commitment to and investment in location-based
advertising technology and solutions.
- NAVTEQ launched real time traffic in 11 European countries and
expanded NAVTEQ Traffic Patterns(TM) to 9 European countries.
- NAVTEQ announced the integration of Nokia GPS data for availability
in NAVTEQ traffic products in North America and Europe.
- NAVTEQ along with Nokia and Magnetti Marelli announced innovative
technology to integrate smartphones into car infotainment systems.
- NAVTEQ announced that Nextar selected NAVTEQ Location Point(TM) to
offer their consumers a lifetime of free traffic supported by
targeted location-based advertising.

Nokia Siemens Networks
- Globe Telecommunications, one of the leading communication service
providers in the Philippines can now offer Web 2.0 services and roll
out new promotional service packages up to 10 times faster than
before after Nokia Siemens
Networks, in collaboration with IBM, implemented a Service Delivery
Framework for the operator, which offers an agile and efficient
service creation environment, and reduces the time to market for new
services.
- Nokia Siemens Networks in September made the world's first LTE call
using commercial base station and fully standard compliant,
commercial software. The successful demonstration, as well as the
fact that Nokia Siemens Networks had delivered LTE-compatible Flexi
Base Station hardware to over 100 customers by end September,
illustrates the readiness of Nokia Siemens Networks' products for
early commercial deployments worldwide.
- Nokia Siemens Networks continued to make inroads in North America
with a 3G network roll out deal in Canada for Globalive Wireless that
includes a services-led turnkey deal for the implementation,
maintenance, design and service assurance as well as a system-led
deal for the WCDMA network.
- Nokia Siemens Networks won a number of other key 3G deals in the
quarter including a contract with Megafon in Russia as the main
supplier for the extension of its 3G radio network, and deals with
Viettel in Vietnam, Hutchison 3G Austria, Nuevatel in Bolivia,
T-Mobile in the Czech Republic and Hutchison Telecom in Hong Kong.
- In fixed line, Nokia Siemens Networks was appointed by Belgacom
International Carrier Services to upgrade its optical network
transmission capacity from 10 Gigabit per second (Gbps) per
wavelength to 40 Gbps. Other deals included an upgrade for Ceské
Radiokomunikace for data rates of up to 10 Gbps and a 4 000 km
extension of a nationwide fiber backbone network for Zain Nigeria.
- Nokia Siemens Networks demonstrated DSL with download speeds of 25
Mbps at a distance of up to 1 500 meters from the local exchange at
Broadband World Forum in Paris with its VDSL2 bonding solution.

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 THIRD QUARTER 2009
(The following discussion is of Nokia's reported results. Comparisons
are given to the third quarter 2008 results, unless otherwise
indicated.)

Nokia's net sales decreased 20% to EUR 9 810 million (EUR 12 237
million). Net sales of Devices & Services decreased 20% to EUR 6 915
million (EUR 8 605 million). Net sales of NAVTEQ increased 6% to EUR
166 million
(EUR 156 million). Net sales of Nokia Siemens Networks decreased 21%
to EUR 2 760 million (EUR 3 503 million).

Operating loss was EUR 426 million (compared with an operating profit
of EUR 1 469 million), representing an operating margin of -4.3%
(12.0%). Operating profit in Devices & Services decreased 51% to EUR
785 million (EUR 1 602 million), representing an operating margin of
11.4% (18.6%). Operating loss in NAVTEQ was EUR 68 million (loss of
EUR 80 million), representing an operating margin of -41.0% (-51.3%).
Operating loss in Nokia Siemens Networks was EUR 1 107 million (loss
of EUR 1 million), representing an operating margin of -40.1% (0.0%).
The operating loss in Nokia Siemens Networks included a
non-deductible impairment of goodwill charge of EUR 908 million.
Corporate Common Functions reported expense totaled EUR 36 million
(EUR 52 million).

In the third quarter 2009, net financial expense was EUR 48 million
(net financial expense EUR 57 million). Loss before tax was EUR 469
million (profit of EUR 1 410 million). The results after taxes
included a charge of EUR 432 million recorded to provide a valuation
allowance on Nokia Siemens Networks' deferred tax assets. Loss was
EUR 913 million (profit of EUR 1 055 million), based on a loss of EUR
559 million (profit of EUR 1 087 million) attributable to equity
holders of the parent and a negative EUR 354 million (negative EUR 32
million) attributable to minority interests. Earnings per share
decreased to EUR -0.15 (basic) and EUR -0.15 (diluted), compared with
EUR 0.29 (basic) and EUR 0.29 (diluted) in the third quarter of 2008.

NOKIA IN JANUARY - SEPTEMBER 2009
(The following discussion is of Nokia's reported results. Comparisons
are given to the January-September 2008 results, unless otherwise
indicated.)

Nokia's net sales decreased 24% to EUR 28 996 million (EUR 38 048
million). Net sales of Devices & Services decreased 27% to EUR 19 674
million (EUR 26 958 million). Net sales of NAVTEQ were EUR 445
million. Net sales of Nokia Siemens Networks decreased 18% to EUR 8
949 million (EUR 10 971 million).

Operating profit decreased 99% to EUR 56 million (EUR 4 474 million),
representing an operating margin of 0.2% (11.8%). Operating profit in
Devices & Services decreased 59% to EUR 2 095 million (EUR 5 050
million), representing an operating margin of 10.6% (18.7%).
Operating loss in NAVTEQ was EUR 288 million, representing an
operating margin of -64.7%. Operating loss in Nokia Siemens Networks
was EUR 1 656 million (loss of EUR 122 million), representing an
operating margin of -18.5% (-1.1%). The operating loss in Nokia
Siemens Networks included a non-deductible impairment of goodwill
charge of EUR 908 million. Corporate Common Functions reported
expense totaled EUR 95 million (EUR 374 million).

In the period from January to September 2009, net financial expense
was EUR 186 million (net financial income EUR 14 million). Loss
before tax was EUR 101 million (profit of EUR 4 494 million). The
results after taxes included a charge of EUR 432 million recorded to
provide a valuation allowance on Nokia Siemens Networks' deferred tax
assets. Loss was EUR 622 million (profit of EUR 3 338 million), based
on a loss of EUR 57 million (profit of EUR 3 412 million)
attributable to equity holders of the parent and a negative EUR 565
million (negative EUR 74 million) attributable to minority interests.
Earnings per share decreased to EUR -0.02 (basic) and EUR -0.02
(diluted), compared with EUR 0.91 (basic) and EUR 0.90 (diluted) in
January-September 2008.

PERSONNEL
The average number of employees during January-September 2009 was 123
139, of which the average number of employees at Nokia Siemens
Networks was 61 575. At September 30, 2009, Nokia employed a total of
123 347 people (123 006 September 30, 2008), of which 63 943 were
employed by Nokia Siemens Networks (60 183 people at September 30,
2008).

SHARES
The total number of Nokia shares at September 30, 2009 was 3 744 956
052. At September 30, 2009, Nokia and its subsidiary companies owned
37 380 257 Nokia shares, representing approximately 1.0% of the total
number of Nokia shares and the total voting rights.


1 EUR = 1.459 USD

The unaudited, consolidated interim financial statements of Nokia
have been prepared in accordance with the International Financial
Reporting Standards ("IFRS"). The same accounting policies and
methods of computation are followed in the interim financial
statements as were followed in the consolidated financial statements
of Nokia for 2008.

The complete press release with tables is available at:


http://www.nokia.com/results/Nokia_results2009Q3e.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 - October 15, 2009

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

- Nokia plans to publish its fourth quarter 2009 results on January
28, 2010.
- Nokia plans to report its other quarterly results in 2010 on the
following dates: Q1 on April 22, Q2 on July 22 and Q3 on October 21,
2010.
- Nokia plans to publish its annual report, Nokia in 2009, in week 12
of 2010
- Nokia's Annual General Meeting is scheduled to be held on May 6,
2010.

www.nokia.com


 
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NOKIA
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