Nokia 2006 Annual Report Download - page 126

Table 3 Equity investments ValueatRisk
VaR 2006 2005
EURm EURm
At December 31 *********************************************************** 0.1 0.1
Average for the year ******************************************************* 0.1 0.2
Range for the year ********************************************************* 0.10.2 0.10.2
In addition to the listed equity holdings, Nokia invests in private equity through Nokia Venture
Funds. The fair value of these availableforsale equity investments at December 31, 2006 was
USD 220 million (USD 177 million in 2005).
Nokia is exposed to equity price risk on social security costs relating to equitybased compensation
plans. Nokia hedges this risk by entering into cash settled equity swap and option contracts.
ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
Not applicable.
PART II
ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
None.
ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
None.
ITEM 15. CONTROLS AND PROCEDURES
(a) Disclosure Controls and Procedures. Our President and Chief Executive Officer and our Executive
Vice President, Chief Financial Officer, after evaluating the effectiveness of the Group’s disclosure
controls and procedures (as defined in US Exchange Act Rule 13a15(e)) as of the end of the period
covered by this annual report on Form 20F, have concluded that, as of such date, the Group’s
disclosure controls and procedures were effective.
(b) Management’s Annual Report on Internal Control Over Financial Reporting. Our management is
responsible for establishing and maintaining adequate internal control over financial reporting for
the company. Nokia’s internal control over financial reporting is designed to provide reasonable
assurance to the company’s management and the Board of Directors regarding the reliability of
financial reporting and the preparation and fair presentation of published financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or
detect misstatements. Therefore, even those systems determined to be effective can provide only
reasonable assurances with respect to financial statement preparation and presentation. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls
may become inadequate because of changes in conditions, or that the degree of compliance with
the policies or procedures may decline.
The company’s management evaluated the effectiveness of our internal control over financial
reporting based on the Committee of Sponsoring Organizations of the Treadway Commission
(‘‘COSO’’) framework. Based on this evaluation, management has assessed the effectiveness of the
company’s internal control over financial reporting, as at December 31, 2006, and concluded that
such internal control over financial reporting is effective.
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