Nokia in Q1 2008
April 17, 2008

Profitability strong for the quarter – operating profit up 39% year on year, excluding special items.

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• Net sales of EUR 12.7 billion, up 28% year on year
• Operating margin of 14.7%, up year on year from 13.6% in Q1 2007, excluding special items
• Diluted EPS of EUR 0.38, growing 46% from Q1 2007, excluding special items

• Nokia expects industry mobile device volumes in the second quarter 2008 to be up slightly sequentially, similar to the market growth in the second quarter 2007, compared to the first quarter 2007.
• We expect Nokia’s mobile device market share in the second quarter 2008 to increase sequentially.
• Nokia continues to expect industry mobile device volumes in 2008 to grow approximately 10% from the approximately 1.14 billion units Nokia estimates for 2007.
• Nokia expects the mobile device market to decline in value in Euro terms in 2008, compared to 2007. The change from our previous estimate of value growth for this market primarily reflects the negative impact of the recently weakened US dollar, the general economic slowdown in the US, and possibly going forward some economic slowdown in Europe.
• Nokia continues to expect some decline in industry ASPs, primarily reflecting the increasing impact of the emerging market and competitive factors in general.
• Nokia continues to target an increase in its market share in mobile devices in 2008.
• Nokia expects the mobile and fixed infrastructure and related services market to be flat in Euro terms in 2008, compared to 2007. The change from the previous estimate of “very slight growth” for this market primarily reflects the negative impact of the recently materially weakened US dollar.
• Nokia and Nokia Siemens Networks target for Nokia Siemens Networks market share to remain constant in 2008.
• Nokia and Nokia Siemens Networks cost synergy target for Nokia Siemens Networks is to achieve substantially all of the EUR 2.0 billion of targeted annual cost synergies by the end of 2008, as previously announced.