Nokia 2015 Annual Report Download - page 54

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52 NOKIA IN 2015
For the year ended December 31, 2014 compared to the year ended December 31, 2013
As the Sale of the D&S Business closed on April 25, 2014, the nancial results of Discontinued operations in 2014 are not comparable to the
nancial results of Discontinued operations in 2013.
The following table sets forth selective line items and the percentage of net sales that they represent for the years indicated.
For the year ended December 31
2014
EURm % of net sales
2013
EURm % of net sales
Year-on-year
change %
Net sales 3 428 100.0 11 649 100.0 (71)
Cost of sales (2 325) (67.8) (8 734) (75.0) (73)
Gross prot 1 103 32.2 2 915 25.0 (62)
Research and development expenses (899) (26.2) (1 778) (15.3) (49)
Selling, general and administrative expenses (628) (18.3) (1 747) (15.0) (64)
Other income and expenses(1) (1 354) (39.5) (133) (1.1) 917
Operating loss (1 778) (51.9) (743) (6.4) (139)
(1) Includes impairment of goodwill of EUR 1 209 million related to HERE in 2014.
Net sales
Discontinued operations net sales in 2014 were EUR 3 428 million,
adecrease of EUR 8 221 million, or 71%, compared to
EUR 11 649 million in 2013. The decrease was primarily attributable
tothe part-year absence of net sales from Devices and Services,
partially oset by an increase in net sales in HERE.
Gross margin
Discontinued operations gross margin in 2014 was 32.2%, compared
to 25.0% in 2013. The increase in gross margin was primarily
attributable to the part-year absence of Devices and Services.
Operating expenses
Discontinued operations operating expenses were EUR 2 881 million
in2014, a decrease of EUR 777 million, or 21%, compared to
EUR 3 658 million in 2013. The decrease was primarily attributable to
the part-year absence of Devices and Services, partially oset by a
EUR 1 209 million impairment charge related to HERE, which negatively
aected 2014.
Operating loss
Discontinued operations operating loss was EUR 1 778 million in 2014
compared to EUR 743 million in 2013. The increase in operating loss
in2014 was primarily attributable to a EUR 1 209 million impairment
charge related to HERE which negatively aected 2014.
Prot/loss for the year
Discontinued operations prot in 2014 was EUR 758 million, an
increase of EUR 1 625 million compared to a loss of EUR 867 million
in2013. The gain on the Sale of the D&S Business recorded in 2014
was EUR 2 803 million.
Results of operations continued