Nokia 2015 Annual Report Download - page 50

48 NOKIA IN 2015
Results of operations continued
Our selling, general and administrative expenses for Continuing
operations in 2015 were EUR 1 652 million, an increase of
EUR 199 million, or 14%, compared to EUR 1 453 million in 2014.
Selling, general and administrative expenses represented 13.2% of
our net sales in 2015 compared to 12.4% in 2014. The increase in
selling, general and administrative expenses was attributable to higher
selling, general and administrative expenses in Nokia Networks, and to
a lesser extent in Group Common Functions and Nokia Technologies.
The increase in Nokia Networks selling, general and administrative
expenses was primarily attributable to higher personnel expenses,
partially oset by a continued focus on cost eciency. The increase in
Group Common Functions selling, general and administrative expenses
was primarily attributable to transaction and other related costs.
In2015, Group Common Functions included transaction-related
costsofEUR 99 million compared to EUR 29 million in 2014. The
increase in Nokia Technologies selling, general and administrative
expenses was primarily attributable to the ramp-up of new businesses,
increased licensing activities, and higher business support costs.
Selling, general and administrative expenses included purchase price
accounting-related items of EUR 44 million in 2015 compared to
EUR 35 million in2014.
Other income and expenses for Continuing operations in 2015
wasanet income of EUR 13 million, an increase of EUR 107 million,
compared to a net expense of EUR 94 million in 2014. The increase
inother income and expenses was primarily attributable to Group
Common Functions, and to a lesser extent Nokia Networks and
NokiaTechnologies. Group Common Functions other income and
expenses in 2015 included net income of approximately EUR 100
million related to investments made through unlisted venture funds.
The change in Nokia Networks other income and expenses in 2015
wasprimarily attributable to the absence of a EUR 31 million charge
in2014 for anticipated contractual remediation costs related to a
technical issue with a third party component, lower costs related to
the sale of receivables, lower net indirect tax expenses and the release
of certain doubtful account allowances, partially oset by higher
restructuring and associated charges. Nokia Networks other income
and expenses included restructuring and associated charges of
EUR 121 million in 2015 compared to EUR 57 million in 2014.
Operating prot
Our operating prot for Continuing operations in 2015 was
EUR 1 688 million, an increase of EUR 276 million, or 19.5%, compared
to an operating prot of EUR 1 412 million in 2014. The increase in
operating prot was primarily attributable to an increase in operating
prot in Nokia Technologies and a lower operating loss from Group
Common Functions, partially oset by lower operating prot in Nokia
Networks. Our operating prot in 2015 included purchase price
accounting-related items, restructuring charges and other special
items of EUR 261 million compared to EUR 188 million in 2014. Our
operating margin in 2015 was 13.5% compared to 12.0% in 2014.
Financial income and expenses
Financial income and expenses for Continuing operations was a net
expense of EUR 177 million in 2015 compared to a net expense of
EUR401 million in 2014, a decrease of EUR 224 million, or 56%.
Thelower net nancial expense in 2015 was primarily attributable to
the absence of a nancial expense of EUR 123 million relating to the
redemption of all material Nokia Networks’ borrowings in 2014, and
theabsence of a non-cash charge of EUR 57 million relating to the
repayment of EUR 1 500 million convertible bonds issued to Microsoft.
Refer to “—Liquidity and capital resources” below.
Prot before tax
Our prot before tax for Continuing operations in 2015 was
EUR 1 540 million, an increase of EUR 541 million compared to
EUR 999 million in2014.
Income tax
Income taxes for Continuing operations was a net expense of
EUR346million in 2015, a change of EUR 2 065 million compared
to a net benet of EUR 1 719 million in 2014. In 2014, the net
incometax benet was primarily attributable to the recognition of
EUR 2 126 million deferred tax assets following the reassessment
ofrecoverability of tax assets in Finland and Germany.
Prot attributable to equity holders of the parent and earnings
pershare
Prot attributable to equity holders of the parent in 2015 was
EUR2466 million, a decrease of EUR 996 million, compared to a prot
of EUR 3 462 million in 2014. Continuing operations generated prot
attributable to equity holders of the parent in 2015 of EUR 1 192 million
compared to a prot of EUR 2 710 million in 2014. Prot attributable
to equity holders of the parent in 2014 was favorably impacted by the
recognition of EUR 2 126 million deferred tax assets. Nokia Group’s
total basic EPS in 2015 decreased to EUR 0.67 (basic) and EUR 0.63
(diluted) compared to EUR 0.94 (basic) and EUR 0.85 (diluted) in 2014.
From Continuing operations, EPS in 2015 decreased to EUR 0.32
(basic) and EUR 0.31 (diluted) compared to EUR 0.73 (basic) and
EUR0.67 (diluted) in 2014.