Nokia 2009 Annual Report Download - page 36

professional services, to operators and service providers. Effective January 1, 2010, Nokia Siemens
Networks has three business units: Business Solutions; Global Services; and Network Systems.
For a breakdown of our net sales and other operating results by category of activity and geographical
location, see Item 5 and Note 2 to our consolidated financial statements included in Item 18 of this
annual report.
Other
We primarily invest in research and development, sales and marketing, and building the Nokia brand.
However, over the past few years we have increased our investment in services, including acquiring a
number of companies with specific technology assets and expertise. During 2010, we currently expect
the amount of capital expenditure, excluding acquisitions, to be approximately EUR 650 million, and
to be funded from our cash flow from operations. During 2009, our capital expenditures, excluding
acquisitions, totaled EUR 531 million, compared with EUR 889 million in 2008. For further information
regarding capital expenditures see Item 5A. “Operating Results” and for a description of capital
expenditures by our reportable segments see Note 2 to our consolidated financial statements
included in Item 18 of this annual report.
We maintain listings on three major securities exchanges. The principal listing venues for our shares
are NASDAQ OMX Helsinki, in the form of shares, and the New York Stock Exchange, in the form of
American Depositary Shares. In addition, our shares are listed on the Frankfurt Stock Exchange.
Our principal executive office is located at Keilalahdentie 4, P.O. Box 226, FI00045 Nokia Group,
Espoo, Finland and our telephone number is [phone]8000.
4B. Business Overview
Devices & Services
The following discussion should be read in conjunction with Item 3D. “Risk Factors” and “Forward
Looking Statements.”
Overview
Since the early 1990s, mobile telecommunications penetration has grown rapidly. Today, the majority
of the world’s population uses a mobile device for voice and text message communication.
Increasingly, people are using multifunctional or converged mobile devices to access digital content
and web services and share their experiences. Converged mobile devices are based on programmable
software platforms, can run applications such as email, web browsing, navigation and enterprise
software, and can also have builtin music players, video recorders, mobile TV and other multimedia
features. Increasingly, such devices are becoming more affordable for a wider population. The
software that powers converged mobile devices has also become increasingly sophisticated, providing
greater opportunities for the development of services, including applications and content, that enrich
the experiences people have with their mobile device.
With a broad range of mobile devices, an offering of services, including applications and content
developed by Nokia and/or third parties, and a global production and sales network, Nokia addresses
virtually every demographic and geographic segment worldwide. Increasingly, our resources are
targeted at developing and offering unique and compelling combinations of mobile devices and
services, together with the appropriate technological infrastructure, to create a rich user experience.
We do, however, continue to offer both mobile devices and services on a standalone basis. More and
more mobile devices, including many of our most affordable models sold predominantly in emerging
markets, offer Internet connectivity and are equipped with GPS, and we believe that these features,
especially in combination, will play a pivotal role in the future development of the market for mobile
devices and services across different geographies. An important part of our services strategy is Ovi,
our Internet services brand, under which we integrate many of our individual services to simplify as
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