Nokia 2006 Annual Report Download - page 47

Overview
The following table sets forth the net sales and operating profit for our business groups for the
three years ended December 31, 2006.
Net Sales and Operating Profit by Business Group
Year Ended December 31,
2006 2005 2004
Net Operating Net Operating Net Operating
Sales Profit/(Loss) Sales Profit/(Loss) Sales Profit/(Loss)
(EUR millions)
Mobile Phones *************** 24 769 4 100 20 811 3 598 18 521 3 786
Multimedia ****************** 7 877 1 319 5 981 836 3 676 175
Enterprise Solutions*********** 1 031 (258) 861 (258) 839 (210)
Networks ******************** 7 453 808 6 557 855 6 431 884
Common Group Expenses ****** — (481) — (392) — (309)
Eliminations ***************** (9) — (19) — (96) —
Total ************************ 41 121 5 488 34 191 4 639 29 371 4 326
For 2006, our net sales increased 20% to EUR 41 121 million compared with EUR 34 191 million in
2005. Our net sales in 2005 increased 16% compared with EUR 29 371 million in 2004. At constant
currency, group net sales would have grown 17% between 2005 and 2006, and 20% between 2004
and 2005. Our operating profit for 2006 increased 18% to EUR 5 488 million compared with EUR
4 639 million in 2005. Our operating profit in 2005 increased by 7% from EUR 4 326 million in 2004.
Our operating margin was 13.3% in 2006, compared with 13.6% in 2005 and 14.7% in 2004.
The following table sets forth the distribution by geographical area of our net sales for the three
years ended December 31, 2006.
Percentage of Nokia Net Sales by Geographical Area
Year Ended December 31,
2006 2005 2004
Europe************************************************************** 38% 42% 42%
Middle East & Africa ************************************************** 13% 13% 12%
China *************************************************************** 13% 11% 10%
AsiaPacific ********************************************************** 20% 18% 16%
North America ******************************************************* 7% 8% 12%
Latin America******************************************************** 9% 8% 8%
Total *************************************************************** 100% 100% 100%
The 10 markets in which Nokia generated the greatest net sales in 2006 were, in descending order
of magnitude, China, the US, India, the United Kingdom, Germany, Russia, Italy, Spain, Indonesia and
Brazil, together representing 51% of total net sales in 2006. In comparison, the 10 markets in which
Nokia generated the greatest net sales in 2005 were China, the US, the United Kingdom, India,
Germany, Russia, Italy, Spain, Saudi Arabia and France, together representing 52% of total net sales
in 2005.
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