Nokia 2005 Annual Report Download - page 70
Download and view the complete annual report
Please find page 70 of the 2005 Nokia annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60 -
61 -
62 -
63 -
64 -
65 -
66 -
67 -
68 -
69 -
70 -
71 -
72 -
73 -
74 -
75 -
76 -
77 -
78 -
79 -
80 -
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
-
207
-
208
-
209
-
210
-
211
-
212
-
213
-
214
-
215
-
216
-
217
-
218
-
219
-
220
-
221
-
222
-
223
-
224
-
225
-
226
-
227
 |
 |
Enterprise Solutions
The following table sets forth selective line items and the percentage of net sales that they
represent for the Enterprise Solutions business group for the fiscal years 2004 and 2003.
Year ended Year ended
December 31, December 31, Percentage
2004 Percentage of 2003 Percentage of Increase/
As revised Net Sales As revised Net Sales (decrease)
(EUR millions, except percentage data)
Net sales .................. 839 100.0% 540 100.0% 55%
Cost of sales ................ (475) (56.6)% (288) (53.3)% 65%
Gross profit ................ 364 43.4% 252 46.7% 44%
Research and development
expenses ................. (304) (36.2)% (239) (44.3)% 27%
Selling, general and
administrative expenses .... (264) (31.5)% (153) (28.3)% 73%
Amortization of goodwill ..... (6) (0.7)% (3) (0.6)% 100%
Operating loss .............. (210) (25.0)% (143) (26.5)% 47%
Enterprise Solutions business group 2004 net sales grew 55% to EUR 839 million compared with
EUR 540 million in 2003 primarily as a result of increased sales of business-focused mobile
devices.
In Enterprise Solutions gross profit increased by 44% to EUR 364 million due to higher sales,
compared with EUR 252 million in 2003. This represented a gross margin of 43.4% in 2004
compared with a gross margin of 46.7% in 2003.
In Enterprise Solutions R&D expenses increased by 27% to EUR 304 million due to wider range of
new products compared with 2003 (EUR 239 million) representing 36.2% of its net sales (44.3% of
its net sales compared with 2003).
In 2004, Enterprise Solutions SG&A expenses increased by 73% to EUR 264 million as a result of
increase in marketing and advertising expenses due to introduction of new products, compared
with EUR 153 million in 2003. In 2004 SG&A expenses represented 31.5% of Enterprise Solutions
net sales (28.3% of Enterprise Solutions net sales compared with 2003).
Enterprise Solutions operating loss increased 47% to EUR 210 million in 2004 compared with a
loss of EUR 143 million in 2003, with an operating margin of -25.0%, compared with an operating
margin of -26.5% in 2003. The operating loss was in line with our expectations.
68