Nokia 2010 Annual Report Download - page 43

Starting April 1, 2011, we will present our financial information in line with the new organizational
structure and provide financial information for our three businesses: Devices & Services, NAVTEQ and
Nokia Siemens Networks. Devices & Services will include two business units: Smart Devices and Mobile
Phones as well as devices and services other and unallocated items. For IFRS financial reporting
purposes, we will have four operating and reportable segments: Smart Devices and Mobile Phones
within Devices & Services, NAVTEQ and Nokia Siemens Networks.
NAVTEQ is a leading provider of comprehensive digital map information and related locationbased
content and services for mobile navigation devices, automotive navigation systems, Internetbased
mapping applications, and government and business solutions.
Nokia Siemens Networks , jointly owned by Nokia and Siemens and consolidated by Nokia, provides
mobile and fixed network infrastructure, communications and networks service platforms, as well as
professional services and business solutions, to operators and service providers. Nokia Siemens
Networks has three business units: Network Systems; Global Services; and Business Solutions.
For a breakdown of our net sales and other operating results by category of activity and geographical
location in 2010, 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 and software
development tools, including acquiring a number of companies with specific technology assets and
expertise. During 2011, we currently expect the amount of capital expenditure, excluding acquisitions,
to be approximately EUR 800 million, and to be funded from our cash flow from operations. During
2010, our capital expenditures, excluding acquisitions, totaled EUR 679 million, compared with
EUR 531 million in 2009. 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
The following discussion should be read in conjunction with Item 3D. “Risk Factors” and “Forward
Looking Statements.”
Devices & Services
Market Overview
Since the early 1990s, mobile telecommunications penetration has grown rapidly, and today the
majority of the world’s population owns a mobile device. The mobile telecommunications market is
often characterized in terms of mobile phones and smartphones. The distinction between these two
classes of mobile products is typically rooted in their differing capabilities in terms of software and
hardware, the richness of the experience they offer and the volume of data they process. Mobile
phones, for instance, have been primarily used for calling and text messaging; however, today many
models increasingly offer access to the Internet and mobile applications, and can provide more
smartphonelike experiences. With their more sophisticated operating systems, smartphones offer a
richer Internet experience, giving their users faster connections to the Internet, as well as, for
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