Nokia 2013 Annual Report Download - page 8

NOKIA IN 2013
6
On April , , Nokia announced its new strategy and
consequently, changes to its leadership. Nokia Board appoint-
ed, eff ective as from May , , Rajeev Suri as the President
and CEO of Nokia.
Board work
The Nokia Board of Directors and its committees met approxi-
mately  times over the year. Part of these meetings were
regularly scheduled meetings, complemented by meetings
through video and conference calls and other means. This
extensive amount was appropriate given the careful and
thorough evaluations we undertook in relation to the strategic
plans in consideration and the two major transactions, in addi-
tion to carrying out the regular work of the Board.
Nokia going forward
Following the closing of the transaction, Nokia continues to
own and maintain the Nokia brand. Under the terms of the
transaction, Microsoft received a -year license arrangement
with Nokia to use the Nokia brand on certain Mobile Phones
products. Additionally, Nokia is restricted from licensing the
Nokia brand for use in connection with mobile device sales for
 months from the closing and from using the Nokia brand on
Nokia’s own mobile devices until December , .
The signifi cant developments during  and early 
also meant that Nokia needed to re-evaluate its strategy and
corporate identity going forward. A large component of the
process was to assess which technologies would defi ne and
dominate the next ten years and how Nokia could position
itself in that emerging environment. The evaluation comprised
of evaluations of strategies for each of Nokia’s three continu-
ing businesses and possible synergies between them, as well
as an evaluation of the optimal corporate and capital structure
for Nokia after the closing of the transaction. Nokia an-
nounced the outcome of its evaluation and the new strategy
on April , .
Looking ahead, Nokia has three continuing businesses,
each of which is a leader in enabling mobility in its respective
market segment: network business Networks (previously Nokia
Solutions and Networks, or NSN), HERE mapping and location
services and Technologies (previously Advanced Technologies),
which is focused on technology development and intellectual
property licensing.
The history of Nokia goes far beyond mobile devices. In
the course of its almost  years of existence, the company
brand has been associated with cables, rubber boots, car
tyres, and televisions, and more. Nokia has always lived among
changes, encountered diffi culties, made landmark decisions,
and survived. The Nokia Board continuing its work in 
focused on building the next chapter of Nokia’s success.
RESULTS OF OPERATIONS
We have three businesses: Networks, HERE, and Technologies,
and four operating and reportable segments for fi nancial
reporting purposes: Mobile Broadband and Global Services
within Networks, HERE, and Technologies. Below is a descrip-
tion of our four reportable segments.
■ Mobile Broadband provides mobile operators with radio and
core network software together with the hardware needed
to deliver mobile voice and data services.
■ Global Services provides mobile operators with a broad
range of services, including network implementation, care,
managed services, network planning and optimization, as
well as systems integration.
■ HERE focuses on the development of location intelligence,
location-based services and local commerce.
■ Technologies is built on Nokia’s Chief Technology Offi ce and
intellectual property rights and licensing activities.
Networks also contains Networks Other, which includes
net sales and related cost of sales and operating expenses
of non-core businesses, as well as Optical Networks busi-
ness until May, , when its divestment was completed.
It also includes restructuring and associated charges for
Networks business. Additionally, as a result of the Sale of the
D&S Business, we report certain separate information for
Discontinued operations.
On August , , Nokia completed the acquisition of
Siemens’ stake in Nokia Siemens Networks, which was a joint
venture between Nokia and Siemens and renamed the com-
pany Nokia Solutions and Networks, also referred to as NSN.
After the closing of the Sale of the D&S Business, NSN was
renamed Networks. Networks was consolidated by Nokia prior
to this transaction. Beginning in the third quarter of ,
Nokia has reported fi nancial information for the two operating
and reportable segments within Networks; Mobile Broadband
and Global Services. Beginning in the fourth quarter of
, the Devices & Services business has been reported as
Discontinued operations. To refl ect these changes, histori-
cal results information for past periods has been regrouped
for historical comparative purposes. As is customary, certain
judgments have been made when regrouping historical results
information and allocating items in the regrouped results.
When presenting fi nancial information as at December,
 and related comparative information for previous
periods, we generally refer to the names of the businesses
and reportable segments as they were named at December,
. However, the terms “Networks” and “Nokia Solutions
and Networks, or “NSN” and the terms “Technologies” and
“Advanced Technologies” may be used interchangeably in this
annual report.