Nokia 2011 Annual Report Download - page 52

managed services, consultancy and systems integration, deployment and maintenance. In November
2011, Nokia Siemens Networks announced and began implementing a new strategy and restructuring
plan to focus on mobile broadband and services.
For a breakdown of our net sales and other operating results by category of activity and geographical
location in 2011, 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.
During 2012, 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 2011, our
capital expenditures, excluding acquisitions, totaled EUR 597 million, compared with EUR 679 million
in 2010. 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 two major securities exchanges. The 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. Nokia has decided to delist its shares from the Frankfurt Stock
Exchange, and the final day of trading will be March 16, 2012.
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].
4B. Business Overview
The following discussion of our three businesses reflects our operational structure adopted during
2011, as described above and the regrouping of prior periods for comparability purposes. It should be
read in conjunction with Item 3D. “Risk Factors” and “Forward-Looking Statements.”
Devices & Services and Location & Commerce
Market Overview
Communication with a mobile device has become an integral part of the lives of people around the world.
Since the early 1990s, mobile telecommunications penetration has grown rapidly, and today billions of
people own a mobile device. Over the same period, what people can do with their mobile device has also
undergone fundamental change. The development of more capable and smaller processors and the
emergence of the mobile device as a single alternative to an array of one-purpose products such as
music players, cameras and pocketable computers have combined with the growth of the Internet and
more sophisticated network infrastructure to make mobile devices powerful, must-have consumer
products. Demand has also grown for larger handheld Internet-centric computing devices, such as tablets
and e-readers, which trade off pocketability for larger screen sizes. Such devices offer access to the
Internet over WiFi and cellular networks and, like more conventional mobile products, are increasingly
offered in combination with an operator data plan which gives the user unlimited or a predefined amount
of access to the Internet using their device. The growing significance of the Internet in communication
has meant that the mobile telecommunication, computing, consumer electronics and Internet industries
are increasingly converging to form a broader industry encompassing Internet-connected products of
varying shapes and sizes.
50