Nokia 2015 Annual Report Download - page 11

Overview
09NOKIA IN 2015
Operating prot
Operating margin
Operating prot (€m) and
operating margin(%)
Net cash at December 31 (€m)Diluted EPS (€)
1 412
672
1 688
5.7%
12.0%
13.5%
201320142015
5 023
2 309
7 775
201320142015
0.07
0.67
0.31
201320142015
Nokia China and ASB are leaders in the
Chinese telecommunications infrastructure
market and both are long-standing
contributors to the development of China
andinnovation in the country. The new joint
venture is planned to operate under the
English name of Nokia Shanghai Bell and
would be registered in the China (Shanghai)
Pilot Free Trade Zone. The new joint venture
would have one board of directors, one
management team, unied customer and
business functions, as well as an integrated
product portfolio and R&D platform.
For nancial reporting purposes, from the
rst quarter 2016, we intend to align our
nancial reporting under three reportable
segments: (i) Ultra Broadband Networks
comprising Mobile Networks and Fixed
Networks, (ii) IP Networks and Applications
comprising IP/Optical Networks and
Applications & Analytics, all within our
Networks business, and (iii) Nokia Technologies.
Additionally, we intend to disclose
segment-level data for Group Common and
Other, which comprises Group-wide support
functions and certain unallocated businesses.
Organizational structure and
reportable segments in2015
In 2015, we had two main businesses (Nokia
Networks and Nokia Technologies) following
the Sale of the HERE Business. For nancial
reporting purposes we had three operating
and reportable segments: Mobile Broadband
and Global Services (both within Nokia
Networks), and Nokia Technologies.
The HERE business was reported as
Discontinued operations from the third
quarter of 2015 onwards. Refer to “Business
overview—Discontinued operations”.
Organizational structure and
reportable segments in 2016
In 2016, we have ve business groups:
MobileNetworks, Fixed Networks, IP/Optical
Networks and Applications & Analytics; as well
as Nokia Technologies.
In China, Alcatel Lucent has a joint venture
Alcatel Lucent Shanghai Bell (“ASB”). ASB is
therst foreign-invested company limited
byshares in China, owned by Alcatel Lucent
(50% plus one share) and China Huaxin Post &
Telecommunication Economy Development
Center (“China Huaxin”, 50% minus one
share). ASB provides end-to-end
telecommunication solutions and services
forcustomers in China and worldwide.
In August 2015, Nokia and China Huaxin
signed a memorandum of understanding
(“MoU”) conrming their intention to combine
Nokia’s telecommunications infrastructure
businesses in China (“Nokia China”) and ASB
into a new joint venture. As agreed under the
MoU, Nokia expects to hold 50% plus one
share in the new joint venture, with China
Huaxin holding the remaining shares. Fair
value compensation would be received for
thecontribution of relevant assets to the joint
venture. The new joint venture is expected
tobe a strong national asset based in China
capable of delivering value for both parties.