About Nokia

Nokia envisions a world where connecting people to what matters empowers them to make the most of every moment

There are more than six billion of us on this planet. We are all different and we value many different things in life. To some people, what matters is staying in touch and sharing experiences; others want to provide for their families and get ahead in their careers; some just want to have fun and live for the moment. More often than not, what matters to you is a unique combination of all of these. At Nokia we increasingly see mobile communications helping everyone connect to the things that matter most in their lives. And because thats important in itself, that means being connected any time and in any place. Connecting people in new and exciting ways means giving everyone the power to choose when and how to stay in touch with those important things, so that they can make the most out of every moment. The majority of the people on this planet already have a mobile device, but we are entering an age where soon a whole world of smart services will be a part of each persons life. So imagine an entire planet where people, places and information are seamlessly connected; where communications devices and services are such an integral and indispensable part of our lives, they really do become second nature. This is how we see the world and the role of communications in making it happen. On the following pages we hope youll get some idea of how Nokia is making this come to life.

Olli-Pekka Kallasvuo, Nokia CEO

The way we live next

By 2015, we believe that communications technology will have totally adapted to your personal needs, anticipating what you want to do. The technology will be invisible, the user interface seamless and intuitive. This means you wont need to learn about the technology to get the most out of your mobile device or service. In fact, your communications tools and services will learn from you. Nokia is developing highly personalized and contextually relevant solutions that will connect you to wherever you want to be, whenever you want to be there. These innovative solutions will provide the intuition and power to share our feelings and experiences as they happen. In this new era of mobile communications, each of us will be able to be connected to a universe of shared experiences that transcend the boundaries of time and geography. Mobile solutions combining devices and services will be aware of our social network and lifestyle, and sensing our location, purpose and even our mood, will point and lead us to people, places and information that are uniquely relevant to us. Being connected to the people and things that matter most to us is fast becoming a natural and essential part of our everyday lives.

Turning future ideas into reality

You find yourself in Barcelona, Spain
You come across a beautiful building, an object like nothing else you have ever seen. Naturally, you want to find out more. You could break the moment and use your device to browse the internet, or you could simply point your device at the building and let the technology find the information for you, almost like live TV. The same could go for a movie poster. You point your device at the poster, and it instantly plays you the movie trailer, checks seat availability at the nearest movie theatres, and lets you buy tickets. It also tells you which of your friends or family are nearby, and helps you purchase tickets for them too. These are just two examples of how mobile solutions will soon make your life easier and more fun, made possible when your mobile device combines your social contacts with your physical location. We call this Social Location, or SoLo for short. And its just around the corner. Think of it as your mobile phone, the internet and PC coming together to form one easy-to-use whole working together as a kind of sixth sense.

Why live in different worlds?

Many of us regularly tap into three different digital worlds: the PC, the web and the mobile world. Nokia is working to remove the artificial barriers that have long existed between them. Imagine you want to travel somewhere new. You may go online, download a map and print out a hard copy to take with you. But wouldnt it be simpler just to let your mobile device call up the map and have its navigation system give you turn-by-turn directions on how to get there? Your mobile device knows what you want to do, and combines all the relevant information to help you do it. You will soon be able to apply this approach to all walks of life. Nokia is helping to create a world where you can do this wherever you are, whenever. Forget the constraints of your PC and time-consuming internet searches. Welcome to the freedom of your truly mobile computer.

Smart services
SoLo, combined with micro-blogging tools, allows you to socialize and share by letting your friends know where you are, how you are feeling and what youre doing. This is just one possibility that comes from combining the real world dimension with the virtual world of the internet, digital maps and the contacts in your phone. Whatever you do, you will always be in control. You will be able to modify, engage or stop these features at will. You decide.

Nokia N97
The Nokia N97 instantly became a new benchmark for our industry. This mobile computer integrates our Ovi services with many unrivalled features, including 32 GB of onboard storage, a high resolution 3.5-inch touch screen and a fully customizable homescreen.

Nokia E71
The Nokia E71 is an impressive performer, which last year drove shipments of the whole Eseries range over the 10 million unit mark. The Nokia E63 continues with the same slender form factor and is available globally for the equivalent of less than 200. With IBM Lotus Notes Traveler and Microsoft Mail for Exchange, Nokia Eseries devices connect to 90 percent of the worlds corporate email systems without the need for additional middleware. Nokia Messaging provides the best connection to the worlds leading consumer email products.

Innovations that take us into tomorrow

Nokia 5800 XpressMusic
The Nokia 5800 XpressMusic, our first mass-market touchscreen device sold more than one million units in just a few months after it went on sale in selected markets. Making the most of touchscreen technology, the Nokia 5800 XpressMusic delivers easy and fast access to all music, video and photos through a one-touch Media Bar menu. The Media Bar also offers a direct link to the web and to online media sharing. Ovi, the consumer brand for Nokia internet services, brings together your online world, your mobile device and your PC into an easy-to-use and consistent experience. With Ovi you can easily manage, sync and share your personal files or information, as well as access Nokia services in media sharing, maps, games, music and messaging.

Mobile solutions
Nokia is connecting people to what matters most to them most by seamlessly integrating devices and smart services. You will no longer need to worry about whether different features fit together, or when, where and how they can be used. All thats left is an irresistible consumer experience; a new and exciting way to connect people to what matters.

Since its foundation way back in 1865, Nokia has always steered a course based on a clear vision and strategy. The company has a long history of technological innovations and a leading role in enabling people to maximize the social and economic benefits from mobile communications. This led to mobile communications being the fastest-growing technology in mankind. We are proud of our heritage and the values that guide our thinking and everyday actions. They are the foundation of Nokias success.

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Our way of doing business

Truly global
Our innovations and understanding of peoples needs are based on studies of more than 100,000 consumers in almost 30 countries. These studies represent an unparalleled amount of insight, some 12 billion data points to be exact. But we dont just look at data. Our designers and anthropologists go out into the real world to see exactly how people are using mobile and Internet technology as part of their everyday lives. All this quantitative and qualitative data are fed directly back into our portfolio management and design, so that our products and services are as inclusive and useful to people as possible. Our employees from design engineers and software programmers to product line specialists and sales staff can be found across the globe. We know we can only fully understand the wide diversity of peoples needs, and work to meet them, by being close to our customers. Local presence on a worldwide scale means we can offer our customers a broad portfolio of devices and services. Our assets include a worldwide distribution network, flexibility and efficiency in logistics and the trust that comes from one of the worlds leading brands.

Connecting over a billion people every day

The global four billion mobile subscriber milestone was reached in early 2009, according to the GSM Association, an industry trade group. More than one billion people place their trust in Nokia devices and services each and every day. In fact, Nokia was ranked the fifth best brand in the world by Interbrand in 2008, for the second consecutive year. Connecting People is at the heart of the Nokia brand. This increasingly means connecting people to what matters most, to give them the power to make the most of every moment.

Our vision of the world is already becoming a reality. We are providing the gateway for people to join this connected world through popular services such as Ovi Maps, Ovi Mail and Comes with Music. And if you wish to use your Nokia device to access other navigation, email, social network, photo-sharing and other sites, you can. Corporate email inboxes are also on the device menu with ninety per cent of clients (Microsoft Mail for Exchange and IBM Lotus Notes Traveller) being fully compatible and easy to set up.

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Solid foundations
Nokia continues to invest in its own research and development while championing the use of open systems. We see our role as a catalyst for innovation. That is why we moved to establish the Symbian Foundation, one of the biggest contributions to an open community that our industry has ever made.

Developing this mobile future

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A healthy and vibrant community

We believe that the greatest innovations come from having a strong community of partners. Thats why we are committed to working closely with our users, developers, operators and other partners. A healthy community of partners will bring innovations to the market much faster than companies working on their own. Some of these innovations are inspired by our own research into how people use mobile and Internet technology.

Excellence outside, excellence inside

The innovations of a strong partner community then feed into our research and development teams which in turn drive product design. We then work with the leading operators in the world to help bring these products to market and to tailor them to specific needs.

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4 million minds and counting

Nokias global developer program, Forum Nokia connects developers to tools, technical information, support, and distribution channels that they can use to build and market applications around the globe. With more than 4 million registered developers in the Forum Nokia community, Nokia actively supports taking the tools, building upon them and innovating on Nokia platforms for a host of new services and content types. One innovative and potentially lucrative distribution channel for content providers and developers is the Ovi Store, a scalable media distribution network.

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A billion positive changes every day with the Power of We

The economic and social benefits of mobility are irrefutable. With more than four billion people already connected, of whom more than a billion using Nokia devices, we have both the potential and the responsibility to make a big difference in the world. Small steps taken by a billion people adds up to a huge impact. The best way for Nokia to be a good corporate citizen is therefore to ensure that we continue to develop mobile communications products and services for everyone and ensure that we consider environmental and social issues in everything we do. This commitment is extended further by asking our countless partners and suppliers to show a similar concern for the planet and its inhabitants.

Thinking inside and outside the box

We consider the environment by deploying a range of environmental practices across all our operations. These include: Phasing out the use of materials like PVC Reducing charger no load power consumption by up to 95% Adding alerts to remind you to unplug your charger once the battery is full Making up to 80% of Nokia devices recyclable Creating eco services to inspire more sustainable behavior

Committed to a sustainable future

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Leading change
In 2008, we led the development of an industry-wide energy ranking for chargers, thereby helping consumers to choose the most efficient chargers and encouraging the industry as a whole to further increase energy efficiency. We are also creating environmentallythemed services and applications that will help you use your mobile device to make informed and sustainable decisions.

Our culture, our values

Bringing together talent, vision and shared principles
A flat, networked organization, as well as speed and flexibility in decision-making, characterize our way of working, which we call the Nokia Way. Openness towards people and new ideas, as well as integrity, are key qualities we encourage at all times. We look for innovative ways to create and introduce our products and solutions to the market and so provide the people that work in our company with a platform for personal growth in a challenging and dynamic environment.

Values for everyday business

As with every other company, our company values set us apart by how well they are reflected in everything we do. Were proud of our values because they have made us what we are today. They provide direction for consistent behaviour, as employees and citizens of the world, and towards our transformation into an internet company. To better reflect our changing business environment and new direction, we recently renewed our values through a process that gave our employees a leading role in articulating our culture and how we act. These values are the foundation for our evolving culture and the basis of our operational mode. Living them every day is our shared philosophy.

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Our values defined

Engaging you At every step of the way, we need to engage all our stakeholders, including employees, in what the company stands for in the world and how we meet the needs of our customers. Achieving together We can all achieve on our own, we can do things together, but doing both in other words succeeding through collaboration and partnership shows the true potential of Nokia. Passion for innovation We are at our most innovative when we tap into peoples desires to live their dreams, releasing the courage to make the leap into the future through new and improved ways and through a better understanding of the world around us. Very human This applies to what we offer customers, how we do business and the impact of our actions and behavior on people and the environment. It is about being very human in the world making things simple, respecting and caring for people, even in tough business situations.

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Our strategy
Mobility and the internet continue to converge. As a truly consumer-led company, we create value by combining smart services and the best devices to deliver irresistible solutions, while growing our high-volume product business. Our strategic objectives are: Irresistible solutions and vibrant ecosystems Direct and continuous consumer relationships Best devices Smart services

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To achieve our vision, we will strengthen our trusted consumer relationships by moving from discrete transactions to a dynamic dialogue with the consumer. We are committed to building direct and continuous consumer relationships. We will drive for continued growth in our devices business and our goal is to broaden our geographic reach and to address all price points by creating the best devices. Our broad device base will be the bedrock of our growing Services business. We will invest in creating relevant, personalized services that blend the dimensions of people and places. Our target is to have 300 million people using our smart services by 2012. With our devices and services, we will be able to deliver irresistible solutions with seamless and delightful consumer experiences thereby connecting people to what matters most in their lives.

Group Executive Board Services Markets Devices Corporate Development Office Corporate Functions Nokia Siemens Networks NAVTEQ

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Organized for success

The world is changing, so are we
Continuous transformation is part of todays business life. Throughout its history, Nokia has adapted and made constant changes to its operations to respond to the needs of the market. We are currently transforming and shaping our business operations to reflect the evolving nature and structure of a converging mobile and internet world. Nokia currently has three reportable segments: Devices & Services, NAVTEQ, and Nokia Siemens Networks. To achieve business success in a long-term, sustainable way, it is vital that we continue the transformation of the company into an internet company.

The right combination

Serving the devices and services business, Nokia has four units: Devices, Services, Markets and the Corporate Development Office. These units work together to execute Nokias devices and services strategy and explore future growth opportunities.

The right acquisitions

Among other acquisitions in 2008, the Nokia family was expanded with NAVTEQ, a leading provider of digital map information for navigation and mapping systems. This strategic acquisition is a key enabler for our concept of Social Location and our range of location-based services.

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The right network

Nokia Siemens Networks was formed on April 1, 2007, and combined our former Networks business group with Siemens carrier-related operations for fixed and mobile networks. Nokia Siemens Networks is jointly owned by Nokia and Siemens and consolidated by Nokia. Nokia Siemens Networks has five business units: Radio Access; Converged Core; Broadband Connectivity Solutions; Operations and Business Software; and Services.

Vital statistics
The 10 markets in which Nokia generated the greatest net sales in 2008 were (in order of magnitude) China, India, the UK, Germany, Russia, Indonesia, the US, Brazil, Italy and Spain.

At the end of 2008 Nokia had

Device manufacturing in 9 countries Infrastructure equipment manufacturing in 4 countries Strong R&D presence in 16 countries Sales in more than 150 countries

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At the end of 2008 Nokia employed almost 126 000 people.

www.nokia.com/corporate

Personnel
Dec. 31, 2008 49% Europe 17% Asia-Pacific 12% China 11% Latin America 7% North America 4% Middle East and Africa

Net sales
2008 37% Europe (% of net sales) 22% Asia-Pacific 14% Middle East and Africa 13% Greater China 10% Latin America 4% North America

Net sales
EUR million

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2004 29 371

2005 34 191

2006 41 121

2007 51 058

2008 50 710

Operating prot
EUR million

2004 4 326

2005 4 639

2006 5 488

2007 7 985

2008 4 966

Copyright 2009. Nokia Corporation. All rights reserved. Nokia and Nokia Connecting People are registered trademarks of Nokia Corporation.

Forward-looking statements Many risks and uncertainties affect whether the forward-looking statements we make will materialize according to our current expectations. For further information on these risk factors, please see Nokias annual report on Form 20-F for the year ended December 31, 2008, or our periodic earnings releases, all available on Nokias internet pages at www.nokia.com.