Nokia 2014 Annual Report Download - page 3

NOKIA IN 2014 01
The year 2014 was one of fundamental
change for Nokia, a new chapter in our storied
history, which stretches back to the founding
of a small paper mill in southern Finland in
1865. Following the sale of substantially all of
our Devices & Services business to Microsoft
(the “Sale of the D&S Business”), which was
completed on April 25, 2014, Nokia emerged
with three businesses—Nokia Networks, HERE
and Nokia Technologies—and a signicantly
improved nancial footing.
Nokia Networks provides trusted mobile
connectivity infrastructure and services;
HERE is our mapping and location intelligence
business; and Nokia Technologies is our
engine for future innovation and licensing.
These three businesses are leaders in their
respective elds, key participants in the
rapidly evolving world of technology which is
as much about connecting things as about
connecting people. We expect to see more
than 50 billion connected things—devices,
modules and sensors—by year 2025. The
opportunity is extraordinary—not just for us,
but for the world at large.
We have a powerful role to play in this
increasingly connected world. We see
ourselves as an enabler, opening and creating
possibilities for our customers, partners and
consumers. Modern-day Nokia’s focus is,
andalways has been, on connecting people.
Thus, we aim to expand the human
possibilities of technology.
Contents
Overview 02
Nokia at a glance 02
2014—A year of reinvention 04
Key data 06
Business overview 08
Letter from the President and CEO 08
Our place in a changing world 10
Nokia’s strategy 12
Operational governance
and leadership 14
Nokia Networks 16
HERE 26
Nokia Technologies 32
Discontinued operations 38
Principal industry trends
aecting operations 40
Board review 44
Results of operations 47
Results of segments 54
Liquidity and capital resources 64
Main events in 2014 66
Board of Directors and management 70
Sustainability and corporate
responsibility at Nokia 72
Employees 73
Shares and share capital 74
Dividend 74
Nokia’s outlook 75
Risk factors 76
Corporate governance 78
Corporate governance statement 80
Members of the Board
of Directors 86
Members of the Nokia Group
Leadership Team 89
Compensation 92
General facts on Nokia 106
History of Nokia 108
Memorandum and Articles
of Association 110
Selected nancial data 112
Shares and shareholders 114
Key ratios 121
Financial statements 122
Consolidated nancial statements 124
Notes to consolidated
nancial statements 130
Parent Company Financial statements 186
Notes to Parent Company Financial
statements 190
Signing of the Annual Accounts 2014
and proposal by the Board of
Directors for distribution of prot 203
Auditor’s report 204
Auditor fees and services 205
Other information 206
Forward-looking statements 207
Glossary of terms 209
Investor information 212
Contact information 212