Nokia 2010 Annual Report Download - page 103

Our net debt to equity ratio was negative 43% at December 31, 2010, compared with a net debt to
equity ratio of negative 25% at December 31, 2009. See item 5B. “Liquidity and Capital Resources”
below.
Profit Before Taxes. Profit before tax increased 86% to EUR 1 786 million in 2010, compared with
EUR 962 million in 2009. Taxes amounted to EUR 443 million in 2010 and EUR 702 million in 2009.
The effective tax rate decreased to 24.8% in 2010, compared with 73.0% in 2009. The higher tax rate
in 2009 was primarily due to the nontax deductible impairment of Nokia Siemens Networks goodwill
in 2009. In 2010, our taxes continued to be unfavorably impacted by Nokia Siemens Networks taxes
as no tax benefits are recognized for certain Nokia Siemens Networks deferred tax items due to
uncertainty of utilization of these items. This was more than offset by the positive effect from
withholding tax legislation changes in certain jurisdictions in 2010.
Noncontrolling interests. Loss attributable to noncontrolling interests totaled EUR 507 million in
2010, compared with loss attributable to noncontrolling interests of EUR 631 million in 2009. This
change was primarily due to a decrease in Nokia Siemens Networks’ losses.
Profit Attributable to Equity Holders of the Parent and Earnings per Share. Profit attributable to equity
holders of the parent in 2010 totaled EUR 1 850 million, compared with EUR 891 million in 2009,
representing a yearonyear increase of 108% in 2010. Earnings per share in 2010 increased to
EUR 0.50 (basic) and EUR 0.50 (diluted), compared with EUR 0.24 (basic) and EUR 0.24 (diluted) in
2009.
Results by Segments
Devices & Services
The following table sets forth selective line items and the percentage of net sales that they represent
for Devices & Services for the fiscal years 2010 and 2009.
Year Ended
December 31,
2010
Percentage of
Net Sales
Year Ended
December 31,
2009
Percentage of
Net Sales
Percentage
Increase/
(Decrease)
(EUR millions, except percentage data)
Net sales................... 29134 100.0% 27 853 100.0% 5%
Cost of sales . . .............. (20364) (69.9)% (18 583) (66.7)% 10%
Gross profit . . . .............. 8770 30.1% 9 270 33.3% (5)%
Research and development
expenses . . . .............. (2954) (10.1)% (2 984) (10.7)% (1)%
Selling and marketing
expenses . . . .............. (2294) (7.9)% (2 366) (8.5)% (3)%
Administrative and general
expenses . . . .............. (393) (1.3)% (417) (1.5)% (6)%
Other operating income and
expenses . . . .............. 170 0.6% (189) (0.7)%
Operating profit ............. 3299 11.3% 3 314 11.9%
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