Nokia 2010 Annual Report Download - page 64

customer financing possibilities due to internal policies or government support. While Nokia Siemens
Networks has moderately increased the amount of financing directly provided to its customers in
2010, as a strategic market requirement, it primarily arranged and facilitated, and plans to continue
to arrange and facilitate, financing to a number of customers, typically supported by Export Credit or
Guarantee Agencies.
Seasonality—Devices & Services, NAVTEQ and Nokia Siemens Networks
For information on the seasonality of Devices & Services, NAVTEQ and Nokia Siemens Networks, see
Item 5A. “Operating Results—Overview—Certain Other Factors—Seasonality.”
Sales in sanctioned countries—Devices & Services, NAVTEQ and Nokia Siemens Networks
We are a global company and have sales in most countries of the world. We sold mobile devices and
services through Devices & Services and network equipment through Nokia Siemens Networks to
customers in Iran, Sudan and Syria in 2010. NAVTEQ did not have any sales to customers in these
countries from the completion of our acquisition of NAVTEQ on July 10, 2008 to December 31, 2010.
Our aggregate sales to customers in these countries in 2010 accounted for approximately 1.3% of
Nokia’s total net sales, or EUR 542 million. Iran, Sudan and Syria are subject to US economic sanctions
that are primarily designed to implement US foreign policy and the United States government has
designated these countries as “state sponsors of terrorism.”
Government Regulation—Devices & Services, NAVTEQ and Nokia Siemens Networks
Our business is subject to direct and indirect regulation in each of the countries in which we, the
companies with which we work and our customers do business. As a result, changes in or
uncertainties related to various types of regulations applicable to current or new technologies,
products and services could affect our business adversely. Moreover, the implementation of
technological or legal requirements could impact our products and services, manufacturing and
distribution processes, and could affect the timing of product and services introductions, the cost of
our production, products and services, as well as their commercial success. Also, our business is
subject to the impacts of changes in trade policies or regulation favoring the local industry
participants, as well as other measures with potentially protectionist objectives that the host
governments in different countries may take. Export control, tariffs or other fees or levies imposed on
our products and services as well as environmental, product safety and security and other regulations
that adversely affect the export, import, pricing or costs of our products and services could adversely
affect our net sales and results of operations.
For example, in the United States, our products and services are subject to a wide range of
government regulations that might have a direct impact on our business, including, but not limited
to, regulation related to product certification, standards, spectrum management, access networks,
competition and environment. We are in continuous dialogue with relevant United States agencies,
regulators and the Congress through our experts, industry associations and our office in
Washington, D.C. New, partly local 3G telecom standards have been enacted in China that may affect
product processers and success criteria of the vendors. Also, the European Union (EU) regulation has in
many areas a direct effect on our business and customers within the single market of the EU. Various
legal requirements influence, for example, the conditions for innovation for multifunctional devices
and services, as well as investment in fixed and wireless broadband communication infrastructure.
We interact continuously with the EU through our experts, industry associations and our office in
Brussels.
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