Nokia 2004 Annual Report Download - page 48

Business segment data in the following discussion and analysis is prior to inter-segment
eliminations. See Note 3 to our consolidated financial statements.
The following table sets forth, for informational purposes only, the net sales and operating profit
for our business groups for the years indicated based on our organizational structure as of
January 1, 2004. The information for fiscal years 2003 and 2002 has been regrouped to reflect the
new business groups as if they had been in existence during each of those years.
Net Sales and Operating Profit by Business Group
Year ended December 31,
2004 2003 2002
Net Operating Net Operating Net Operating
Sales Profit/(Loss) Sales Profit/(Loss) Sales Profit/(Loss)
(EUR millions)
Mobile Phones ............... 18 507 3 768 20 951 5 927 21 628 5 718
Multimedia ................. 3 659 179 2 504 (186) 1 555 (365)
Enterprise Solutions .......... 830 (199) 529 (141) 487 (102)
Networks .................. 6 367 878 5 620 (219) 6 539 (49)
Common Group Expenses ...... — (296) — (370) — (422)
Eliminations ................ (96) — (149) — (193) —
Total ...................... 29 267 4 330 29 455 5 011 30 016 4 780
For 2004, our net sales decreased 1% to EUR 29 267 million compared with EUR 29 455 million in
2003, and in 2003 net sales decreased 2% compared with 30 016 million in 2002. At constant
currency, group net sales would have grown 6% between 2003 and 2004 and 7% between 2002
and 2003. Our operating profit for 2004 decreased 14% to EUR 4 330 million compared with
EUR 5 011 million in 2003. In 2003, operating profit increased by 5% from 4 780 million in 2002.
Our operating margin was 14.8% in 2004 compared with 17.0% in 2003 and 15.9% in 2002,
respectively.
The following table sets forth the distribution by geographical area of our net sales for the years
indicated.
Percentage of Nokia Net Sales by Geographical Area
Year ended
December 31,
2004 2003 2002
Europe, Middle-East & Africa ....................................... 55% 56% 54%
China ......................................................... 10% 8% 11%
Asia-Pacific ..................................................... 15% 14% 13%
North America .................................................. 12% 16% 16%
Latin America ................................................... 8% 6% 6%
Total .......................................................... 100% 100% 100%
The 10 markets in which Nokia generated the greatest net sales in 2004, in descending order of
magnitude, were the US, China, UK, Germany, India, Brazil, Russia, United Arab Emirates, Italy and
Spain, together representing 55% of total net sales. In comparison, the 10 markets in which Nokia
generated the greatest net sales in 2003 were the US, UK, Germany, China, United Arab Emirates,
India, Italy, France, Brazil and Spain, together representing 61% of total net sales.
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