Nokia 2012 Annual Report Download - page 48

fulfillment of certain criteria, to reimburse up to 50% of any lost profit suffered by Nokia Siemens
Networks as a result of the violations of law in the Siemens carrier-related operations that occurred
prior to the transfer to Nokia Siemens Networks.
We cannot predict with any certainty the final outcome of the ongoing investigations related to this
matter, when and the terms upon which such investigations will be resolved, which could be a number
of years, or the consequences of the actual or alleged violations of law on our or Nokia Siemens
Networks’ business, including its relationships with customers.
ITEM 4. INFORMATION ON THE COMPANY
4A. History and Development of the Company
Nokia is a global leader in mobile communications whose products have become an integral part of the
lives of people around the world. Every day, more than 1.3 billion people use their Nokia to capture and
share experiences, access information, find their way or simply to speak to one another. Nokia’s
technological and design innovations have made its brand one of the most recognized in the world.
Nokia Siemens Networks, jointly owned by Nokia and Siemens, is one of the leading global providers
of telecommunications infrastructure hardware, software and services.
For 2012, our net sales were EUR 30.2 billion (USD 39.8 billion), and we had an operating loss of
EUR 2.3 billion (USD 3.0 billion). At the end of 2012, we employed 97 798 people, of which 6 186 were
employed by HERE (formerly Location & Commerce) and 58 411 were employed by Nokia Siemens
Networks.
We operate a global network of production facilities for mobile products and network infrastructure in
eight countries, as well as a broad network of sales, customer service and other operational units.
Nokia has made significant investments into research and development and has been one of the
leading innovators in the industry over the past two decades. For mobile products, we operate several
major research and development and software development facilities, with key sites in China, Finland,
Germany and the United States.
History
During our 148 year history, Nokia has evolved from its origins in the paper industry to become a world
leader in mobile communications. Today, Nokia brings mobile products and services to more than one
billion people from virtually every demographic segment of the population.
The key milestones in our early history and through to the early part of this century are as follows:
• In 1967, we took our current form as Nokia Corporation under the laws of the Republic of
Finland. This was the result of the merger of three Finnish companies: Nokia AB, a wood-pulp
mill founded in 1865; Finnish Rubber Works Ltd, a manufacturer of rubber boots, tires and
other rubber products founded in 1898; and Finnish Cable Works Ltd, a manufacturer of
telephone and power cables founded in 1912.
• We entered the telecommunications equipment market in 1960 when an electronics
department was established at Finnish Cable Works to concentrate on the production of
radio-transmission equipment.
• Regulatory and technological reforms have played a role in our success. Deregulation of the
European telecommunications industries since the late 1980s stimulated competition and
boosted customer demand.
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