SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

Report of Foreign Private Issuer

Pursuant to Rule 13a -16 or 15d -16 of
the Securities Exchange Act of 1934

 

Report on Form 6-K dated April 21, 2005

 

Nokia Corporation
Nokia House
Keilalahdentie 4
02150 Espoo
Finland

(Name and address of registrant’s principal executive office)

 

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

 

Form 20-F  ý      Form 40-F  o

 

Enclosures:

 

1.                                                                   Nokia Press Release dated April 21, 2005 and titled:

 

Nokia reports Q1 2005 net sales of EUR 7.4 billion and EPS EUR 0.19

 

 



 

 

Press Release

 

 

April 21, 2005

 

 

Nokia reports Q1 2005 net sales of EUR 7.4 billion and EPS EUR 0.19

Company posts double-digit sales growth of 17%; raises 2005 mobile device market volume estimate to 740 million

 

 

 

NOKIA IN THE FIRST QUARTER 2005

 

EUR million

 

Q1/2005*

 

Q1/2004
Revised**

 

Change (%)

 

Net sales

 

7 396

 

6 348

 

17

 

Mobile Phones

 

4 527

 

4 080

 

11

 

Multimedia

 

1 133

 

744

 

52

 

Enterprise Solutions

 

307

 

184

 

67

 

Networks

 

1 431

 

1 346

 

6

 

Operating profit

 

1 118

 

1 019

 

10

 

Mobile Phones

 

869

 

1 029

 

-16

 

Multimedia

 

155

 

-22

 

 

 

Enterprise Solutions

 

-9

 

-35

 

 

 

Networks

 

221

 

154

 

44

 

Common Group Expenses

 

-118

 

-107

 

 

 

Operating margin (%)

 

15.1

 

16.1

 

 

 

Mobile Phones (%)

 

19.2

 

25.2

 

 

 

Multimedia (%)

 

13.7

 

-3.0

 

 

 

Enterprise Solutions (%)

 

-2.9

 

-19.0

 

 

 

Networks (%)

 

15.4

 

11.4

 

 

 

Financial income and expenses

 

78

 

76

 

3

 

Profit before tax and minority interests

 

1 192

 

1 091

 

9

 

Net profit

 

863

 

729

 

18

 

EPS, EUR

 

 

 

 

 

 

 

Basic

 

0.19

 

0.16

 

19

 

Diluted

 

0.19

 

0.16

 

19

 

 


*Q1 2005 special items

- Nokia’s financial income in Q1 2005 included a positive EUR 40 million item, representing a gain on the sale of a portion of the France Telecom bond.

- The negative impact of restructuring in Multimedia in Q1 2005 was EUR 15 million, which was significantly less than the indicated range of EUR 60 to EUR 80 million, as previously guided.

-  The net impact of these special items on Q1 EPS, basic and diluted, was negligible.

 

** New IFRS Standards

International Financial Reporting Standards (IFRS) were subject to changes as of January 1, 2005. Nokia’s Q1 and full-year 2004 financial accounts now reflect the retrospective implementation of IFRS 2 and IAS 39R. More information and accompanying tables can be found from page 15 of this document.

 

JORMA OLLILA, CHAIRMAN AND CEO:

 

I was extremely satisfied with Nokia’s overall first-quarter performance, which brought double-digit growth at the top line, including year-on-year sales growth for each of our four business groups. First-quarter operating cash flow was strong at EUR 1.3 billion, backed by good overall profitability.

 

According to Nokia estimates, year-on-year volume growth for the mobile device market in the first quarter came in ahead of expectations at 20%, with Nokia growing at about the same pace as the market. Despite some weakness in 3G devices at the industry level, this marked a strong start for the year and prompted an upward revision of our 2005 annual market volume estimate to about 740 million units.

 

In Nokia’s own mobile device business, year-on-year volume growth during the quarter was fastest in China, which became our number one single market, followed by Asia Pacific and Europe/Middle East/Africa. However, volume declines in North America and Latin America were disappointing. In Asia, particularly China, we have focused on expanding our distribution and developing a competitive and quality product portfolio. In the Americas, we will continue working hard to strengthen and broaden our product offering.

 

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I was really pleased to see solid average selling prices of 110 euro for the quarter in our mobile device business. This was supported by a greater share of high-end product sales from our multimedia and enterprise businesses.

 

In mobile infrastructure, we also had a very good quarter, with higher-than-expected profitability boosted by an excellent performance in March. Networks profitability was positively affected by a product mix favoring high-margined products, a less-than-anticipated share of sales from new growth markets and the collection of some previously provisioned customer receivables, all of which pushed margins ahead of expectations.

 

Nokia’s operating margin of 15.1% reflects an excellent all-round performance from all areas of our business and gives us a solid platform to build on as the year unfolds.

 

INDUSTRY DEVELOPMENTS

 

Based on volume developments during the first quarter 2005, Nokia now expects the overall mobile device market for 2005 to reach about 740 million units, compared with our previous estimate of approximately 10% annual growth, from an estimated 643 million units in 2004. The overall market is also expected to grow in value, but to a lesser extent. Volume growth is expected to continue to be driven by replacement and upgrade sales in more developed markets, with the availability of new features, services and cameras, and by new subscriber growth in developing mobile markets.

 

In infrastructure, Nokia continues to expect the overall market in 2005 to be slightly up compared with 2004 in euro terms.

 

OUTLOOK FOR SECOND QUARTER 2005

 

Second-quarter Nokia group net sales are expected to be in the range of EUR 7.9 billion to EUR 8.2 billion, compared with EUR 6.5 billion in the second quarter 2004.  EPS (diluted) is expected to be in the range of EUR 0.15 to EUR 0.18, compared with EPS (diluted) EUR 0.15 in the second quarter 2004, which included a positive impact of EUR 0.03 from special items.

 

Q1 2005 FINANCIAL HIGHLIGHTS

 

Nokia Group

Nokia’s first-quarter 2005 net sales increased 17% to EUR 7.4 billion, compared with EUR 6.3 billion in the first quarter of 2004.  At constant currency, group net sales would have increased 19%. All business groups contributed to the year-on-year sales growth.

 

Nokia’s first-quarter operating profit grew 10% year on year to EUR 1.1 billion, compared with the first quarter 2004 (EUR 1.0 billion) with an operating margin of 15.1% (16.1%).

 

Operating cash flow for the quarter ended March 31, 2005 was EUR 1.3 billion, compared with EUR 0.9 billion in Q1 2004, and total combined cash and other liquid assets were EUR 12.6 billion, compared with EUR 11.5 billion at 31 December 31, 2004.  As of March 31, 2005, net debt-to-equity ratio (gearing) was  94%, compared with  79% at December 31, 2004.

 

Mobile devices

For the first-quarter 2005, the total mobile device sales volume achieved by the Mobile Phones, Multimedia and Enterprise Solutions business groups reached 53.8 million units, representing a year-on-year rise of 20% and a sequential decline, mainly due to normal seasonality, of 19%.  Overall market volumes for the same period reached an estimated 170 million units, representing 20% annual growth and a 13% sequential decline. In smartphones, the total industry volume for the first quarter reached an estimated 10 million units, while Nokia’s own smartphone volumes grew to 5.4 million units, compared with 1.8 million units in the first quarter 2004.

 

Global mobile subscription growth also continued, as total global subscriptions rose to an estimated 1.8 billion by the end of the quarter, backed by the ongoing strong momentum in new growth markets such as India, Russia, China and Brazil.

 

The following chart sets out Nokia’s mobile device volume for the periods indicated, as well as the year-on-year growth rates, by geographic area.

 

2



 

NOKIA MOBILE DEVICE VOLUME BY GEOGRAPHIC AREA

 

(million units)

 

Q1 2005

 

Q1 2004

 

YoY Change (%)

 

Q4 2004

 

Europe, Middle-East & Africa

 

27.4

 

21.6

 

27

 

32.8

 

China

 

7.1

 

4.2

 

69

 

5.9

 

Asia-Pacific

 

10.6

 

7.4

 

44

 

10.4

 

North America

 

4.3

 

6.5

 

-33

 

8.0

 

Latin America

 

4.4

 

5.0

 

-12

 

9.0

 

Total

 

53.8

 

44.7

 

20

 

66.1

 

 

Nokia’s year-on-year volume growth in China was positively affected by stronger seasonal market growth in the first quarter, and our expanding distribution system, competitive product portfolio, brand strength and quality products. In Europe/Middle East/Africa, market growth in the first quarter 2005, particularly in new growth markets, combined with an improved product portfolio, drove Nokia volumes, compared with the first quarter 2004.

 

However, in North America, and now in Latin America, Nokia’s year-on-year volume decline primarily reflected operator migration from TDMA, which was a strong market for us in the first quarter 2004, to GSM and CDMA, where the company’s relative position is not as strong.

 

Nokia’s estimated market share for the first quarter was 32%, flat year on year and down compared with 34% in the fourth quarter 2004. Strong sequential market share gains in China, followed by Europe/Middle East/Africa, were more than offset by substantial market share losses in North America and Latin America. The seasonal strength of the Korean and Japanese markets in the first quarter also adversely impacted our market share, as Nokia does not have a material presence in those markets.

 

The average selling price for Nokia’s mobile device business was EUR 110. This was supported by proportionally higher sales of high-end products from our multimedia and enterprise businesses in the first quarter 2005.

 

Mobile Phones: First-quarter 2005 net sales grew 11% year on year to EUR 4.5 billion, compared with EUR 4.1 billion in the first quarter 2004, driven by good demand. Sales growth was strongest in China, followed by Asia Pacific and Europe/Middle East/Africa, partially offset by sales declines in North America and to a lesser extent in Latin America. Operating profit decreased 16% to EUR 869 million, compared with EUR 1.0 billion in the first-quarter 2004, with an operating margin of 19.2% (25.2%).

 

Multimedia: First-quarter 2005 net sales grew by 52% year on year to EUR 1.1 billion, compared with EUR 744 million in the first quarter 2004. Sales growth was strong in all areas except the Americas, with growth strongest in Europe/Middle East/Africa. Multimedia sales were driven by ongoing good demand for imaging smartphones.

 

The negative impact of the restructuring in Multimedia in the first quarter 2005 was EUR 15 million, which was significantly less than the previously announced range of EUR 60 to EUR 80 million. Multimedia first-quarter operating profit increased to EUR 155 million, compared with an operating loss of EUR 22 million in the first quarter 2004, with an operating margin of 13.7%, compared with –3.0% in the first quarter 2004, due to a strong performance in imaging smartphones sales.

 

Enterprise Solutions: First-quarter 2005 net sales increased 67% year on year to EUR 307 million, compared with EUR 184 million in the first quarter 2004, driven by healthy sales of enterprise devices. This also reduced our first-quarter 2005 operating loss to EUR 9 million, compared with an operating loss of EUR 35 million in the first quarter 2004. Enterprise Solutions first-quarter operating margin improved to -2.9%, compared with -19.0% in the first quarter 2004.

 

Networks

First-quarter 2005 net sales increased 6% year on year to EUR 1.4 billion, compared with EUR 1.3 billion in the first quarter 2004.  Sales were supported by capacity investments in more developed markets, particularly during March, with growth highest in Asia Pacific followed by Latin America, and to a lesser extent Europe/Middle East /Africa. Growth in these markets more than countered lower sales in China and North America.

 

Networks first-quarter 2005 operating profit reached EUR 221 million, compared with EUR 154 million in the first quarter 2004, with an operating margin of 15.4% (11.4%).  Profitability was positively affected by a product mix favoring high-margined products, a less-than-anticipated share of sales from new growth markets and the collection of some previously provisioned customer receivables, all of which pushed margins ahead of expectations.

 

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Q1 2005 OPERATING HIGHLIGHTS

 

Nokia further renewed its mobile device offering in the first quarter with the announcement of 17 new models and first shipments of seven models.

 

Mobile Phones

In addition to an existing range of software customization options, we are providing our GSM operator customers with greater possibilities for mobile phone customization. During the first quarter, the Nokia 6101 folding camera phone became Nokia’s first GSM mobile phone available in an exclusive operator design. China Mobile Communications Corporation also became the first to offer an exclusive operator design to the China market in the form of the Nokia 6102.

 

During the quarter, Nokia strengthened its mid-range portfolio of feature-rich, voice-centric handsets with the launch of three new products: the Nokia 6230i camera phone, which adds a megapixel camera, push-to-talk functionality and a built-in stereo music player to the highly popular Nokia 6230; the Nokia 6021, an affordable business-oriented phone with push-to-talk technology, voice activated dialing, enhanced connectivity and synchronization options with Bluetooth wireless technology; and the Nokia 6030, a dual-band phone with easy messaging functionality and advanced ergonomics. The Nokia 6101, 6230i and 6021 are expected to start shipping in the second quarter and the Nokia 6030 in the third quarter of 2005.

 

Nokia announced seven new CDMA handsets designed to strengthen and add depth to Nokia’s CDMA product portfolio. These devices include the Nokia 2115i, an affordable phone targeting first-time and prepaid wireless users, the Nokia 3152, Nokia 3155 and Nokia 3155i, all mid-tier folding phones, and the Nokia 6152, Nokia 6155 and Nokia 6155i, folding camera phones with advanced features.

 

The Nokia 2115i is expected to start shipping in the second quarter, the Nokia 3152, Nokia 3155 and Nokia 3155i in the third quarter, and the Nokia 6152, Nokia 6155 and Nokia 6155i in the fourth quarter 2005.

 

Multimedia

We further expanded our 3G WCDMA product range with the launch and shipping of the Nokia 6680 megapixel smartphone. Equipped with two integrated cameras and a wide range of smartphone features, the Nokia 6680 is optimized for visual sharing. It also supports the Nokia XpressPrint printing solution for easy printing of images, e-mails and organizer information. Shipments of the Nokia 6680 started in March. Nokia also announced two EDGE-enabled megapixel smartphones, the Nokia 6681, designed for EDGE markets in Asia Pacific and Europe/Middle East/Africa, and the Nokia 6682, designed for the Americas EDGE markets.

 

In music, we made two important collaboration announcements during the quarter. Together with Loudeye Corporation, Nokia announced a mobile music platform for wireless operators. This platform enables operators to launch branded mobile music services for their customers with minimum effort and resources. Nokia also announced a long-term collaboration with Microsoft on digital media format support for Nokia handsets and Windows Media Players. This means consumers will be able to enjoy music from the mobile music solution offered by Nokia and Loudeye on both Nokia handsets and Microsoft® Windows® XP-based PCs. It will also allow for easy connection and content flow between them.

 

Nokia continued to work together with broadcasters and mobile operators to enable mobile TV services based on DVB-H. In addition to a pilot in Germany last year and ongoing trials in the US, Europe and Asia, a commercial mobile TV pilot was launched in Finland targeting 500 consumers in the capital area. In games, Nokia continued to launch N-Gage games with N-gage Arena features, such as multi-player gaming, competitions and chat.

 

Enterprise Solutions

During the first quarter, the Nokia 9500 Communicator and Nokia 9300 enterprise smartphone began shipping in volumes. Both these devices have been optimized to meet corporate IT demands for customized, manageable and secure mobile access to email and other enterprise software. In only a few months, these device sales have already exceeded more than 50% of the lifetime volume of the two preceding Communicator models. Third-party studies indicate that Nokia is establishing a strong share position in this market.

 

We announced a licensing agreement for Microsoft Corp’s ActiveSync to enable a direct over-the-air synchronization link between Nokia enterprise mobile devices and the Microsoft Exchange Server 2003 for email and other personal information management (PIM) data. This supports Nokia’s broader strategy of becoming the device of choice for mobile e-mail and

 

4



 

messaging in the enterprise market and will expand our portfolio of email offerings, providing enterprise customers with the widest possible choice of email and PIM solutions on the market today.

 

Working closely with a number of our enterprise customers, we are piloting mobility solutions around the world to lay the ground for commercial deployments later in 2005. These pilots include innovative and cost effective approaches to different remote access or mobile connectivity solutions (IP Sec or SSL Virtual Private Networks, Mobile VPN) combined with security and applications such as mobile e-mail or Customer Relationship Management.

 

For images of the mobile devices mentioned in the above Mobile Phones, Multimedia and Enterprise Solutions sections, please go to: http/www.nokia.com/aboutnokia/financials

 

5



 

Networks

During the first quarter, Nokia won a WCDMA 3G contract with FarEastTone Telecommunications in Taiwan, reinforcing the company’s position as the leading WCDMA supplier for the Taiwanese market. Nokia also signed a turnkey contract for EDGE expansion and a 3G core network deal with Pannon in Hungary, as well as a frame agreement for GSM/EDGE and WCDMA expansion with Polkomtel in Poland.

 

The company won GSM, GSM/GPRS or GSM/EDGE deals with Telecom Personal in Argentina, Jiangxi MCC in China, Ethiopian Telecommunications Corporation in Ethiopia, and with TeliaSonera in Sweden. Telecom Personal is a new GSM customer for Nokia.

 

Nokia announced a Push to talk over Cellular contract with Turkcell in Turkey. Eurotel in the Czech Republic and Hutchison in Hong Kong launched their commercial push to talk services using the Nokia solution. Nokia is leading the Push to talk over Cellular market, having delivered its solution to 30 operators around the world.

 

The company is increasing its focus on the growing services market in response to operator demand. In general most new and existing deals include a broad selection of services such as planning, implementation, systems integration, operation solutions, consulting and care services.

 

Nokia won TETRA network deals in Abu Dhabi, France and Italy. At the beginning of April, the company announced it is in advanced talks with EADS, the European Aeronautic Defense and Space Company, on the sale of Nokia’s Professional Mobile Radio business to EADS. The sale is still subject to regulatory approvals.

 

Technology

During the first quarter, Nokia introduced the Series 60 Platform 3rd Edition, supported by a complete set of developer tools and specifically targeted to support the mid-range expansion of the leading smartphone platform.

 

During the quarter, Nokia made several technology cooperation agreements with significant business partners. Two agreements were made with Microsoft concerning the compatibility of music formats in Nokia devices and personal computers, and the use of Microsoft ActiveSync protocol in the synchronization between select Nokia devices and Microsoft Exchange servers.

 

Nokia also announced with Macromedia that their Flash technology would be integrated into the Series 60 Platform as well as into other Nokia software platforms. Series 60 will also become a reference platform for Macromedia’s mobile Flash technology.

 

Together with Real Networks, Nokia announced collaboration on RealAudio, RealVideo and Helix DNA licensing. Texas Instruments (TI) and Nokia announced an agreement whereby Nokia would start to implement TI’s Digital RF Processor based single-chip solution into its mobile devices. The cooperation will allow Nokia to offer more cost-effective advanced handsets, especially in high-volume entry markets.

 

Forum Nokia strengthened its position as the world’s largest mobile application developer community. At the end of March 2005, Forum Nokia had more than 1.9 million registered members.

 

The company launched several products for network technology evolution and convergence, including the Nokia Internet High Speed Packet Access (I-HSPA) solution, designed to bring higher performance and more cost-efficient broadband wireless access for high-volume packet data transfer.

 

PERSONNEL DEVELOPMENTS

 

The average number of employees during the first quarter 2005 was 55 557. At March 31, 2005, Nokia employed a total 55 393 people (55 505 people at December 31, 2004).

 

CAPITAL STRUCTURE DEVELOPMENT

 

Nokia repurchased through its share repurchase plan a total of 54 000 000 shares on the Helsinki Stock Exchanges at an aggregate price of approximately EUR 651 379 000 during the period from January 28, 2005 to February 24, 2005. The price paid was based on the market price at the time of repurchase. The shares were repurchased to be used for the purposes specified in the authorization held by the Board. The aggregate par value of the shares purchased was EUR 3 240 000,

 

6



 

representing approximately 1.16% of the share capital of the company and of the total voting rights. These new holdings did not have any significant effect on the relative holdings of the other shareholders of the company nor on their voting power.

 

On March 31, 2005, Nokia and its subsidiary companies owned 230 718 012 Nokia shares. The shares had an aggregate par value of EUR 13 843 080.72, representing approximately 4.95% of the share capital of the company and of the total voting rights. The total number of shares on March 31, 2005 was 4 663 761 300 and the share capital was EUR 279 825 678.

 

The Annual General Meeting on April 7, 2005 resolved to cancel shares repurchased during the past four quarters, a total of 230 million shares. The cancellation will be effected on April 22, 2005, reducing the total number of shares correspondingly.

 

7



 

Q1 2005 BY BUSINESS GROUP, EUR million (unaudited)

 

 

 

Mobile
Phones

 

Multimedia

 

Enterprise
Solutions

 

Networks

 

Common
Group
Functions

 

Eliminations

 

Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

4 527

 

1 133

 

307

 

1 431

 

 

-2

 

7 396

 

Gross profit

 

1 484

 

494

 

140

 

612

 

9

 

 

2 739

 

Gross margin,%

 

32.8

 

43.6

 

45.6

 

42.8

 

 

 

 

 

37.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses

 

-289

 

-214

 

-81

 

-279

 

-56

 

 

-919

 

% of net sales

 

6.4

 

18.9

 

26.4

 

19.5

 

 

 

 

 

12.4

 

Selling and marketing expenses

 

-296

 

-110

 

-50

 

-98

 

-3

 

 

-557

 

% of net sales

 

6.5

 

9.7

 

16.3

 

6.8

 

 

 

 

 

7.5

 

Administrative, general and other expenses

 

-30

 

-15

 

-18

 

-14

 

-68

 

 

 

-145

 

% of net sales

 

0.7

 

1.3

 

5.9

 

1.0

 

 

 

 

 

2.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

869

 

155

 

-9

 

221

 

-118

 

 

1 118

 

Operating margin,%

 

19.2

 

13.7

 

-2.9

 

15.4

 

 

 

 

 

15.1

 

 

REVISED 1Q 2004 BUSINESS GROUP, EUR million*
(unaudited)

 

 

 

Mobile
Phones

 

Multimedia

 

Enterprise
Solutions

 

Networks

 

Common
Group
Functions

 

Eliminations

 

Group

 

Net sales

 

4 080

 

744

 

184

 

1 346

 

 

-6

 

6 348

 

Gross profit

 

1 617

 

293

 

89

 

575

 

2

 

 

2 576

 

Gross margin,%

 

39.6

 

39.4

 

48.4

 

42.7

 

 

 

 

 

40.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses

 

-270

 

-217

 

-69

 

-263

 

-45

 

 

-864

 

% of net sales

 

6.6

 

29.2

 

37.5

 

19.5

 

 

 

 

 

13.6

 

Selling and marketing expenses

 

-262

 

-86

 

-40

 

-113

 

-19

 

 

-520

 

% of net sales

 

6.4

 

11.6

 

21.7

 

8.4

 

 

 

 

 

8.2

 

Administrative, general and  other expenses

 

-37

 

-9

 

-13

 

-45

 

-45

 

 

 

-149

 

% of net sales

 

0.9

 

1.2

 

7.1

 

3.3

 

 

 

 

 

2.3

 

Amortization of goodwill

 

-19

 

-3

 

-2

 

 

 

 

-24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

1 029

 

-22

 

-35

 

154

 

-107

 

 

 

1 019

 

Operating margin,%

 

25.2

 

-3.0

 

-19.0

 

11.4

 

 

 

 

 

16.1

 

 


*Q1 and full-year 2004 financial accounts now reflect the retrospective implementation of IFRS 2 and IAS 39R

 

8



 

NOKIA NET SALES BY GEOGRAPHIC AREA (2004 Revised*)

 

EUR (millions, unaudited)

 

Q1 05

 

YoY change
(%)

 

Q1 04

 

 

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe/Middle East/Africa

 

4 289

 

23

%

3 491

 

 

 

15 791

 

China

 

872

 

26

%

689

 

 

 

2 992

 

Asia-Pacific

 

1 268

 

36

%

930

 

 

 

4 544

 

North America

 

498

 

-36

%

773

 

 

 

3 540

 

Latin America

 

469

 

1

%

465

 

 

 

2 504

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

7 396

 

17

%

6 348

 

 

 

29 371

 

 


*Q1 and full-year 2004 financial accounts now reflect the retrospective implementation of IFRS 2 and IAS 39R

 

NOKIA PERSONNEL BY GEOGRAPHIC AREA

 

Headcount

 

Q1 05

 

YoY change
(%)

 

Q1 04

 

QoQ change
(%)

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe/Middle East/Africa

 

36 075

 

5

%

34 213

 

0

%

36 069

 

China

 

5 076

 

10

%

4 622

 

1

%

5 007

 

Asia-Pacific

 

3 254

 

22

%

2 674

 

3

%

3 163

 

North America

 

7 173

 

-1

%

7 246

 

-1

%

7 276

 

Latin America

 

3 815

 

28

%

2 970

 

-4

%

3 990

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

55 393

 

7

%

51 725

 

0

%

55 505

 

 

9



 

CONSOLIDATED PROFIT AND LOSS ACCOUNT, IFRS, EUR million (unaudited)

 

 

 

1-3/2005

 

Revised*
1-3/2004

 

Revised*
1-12/2004

 

 

 

 

 

 

 

 

 

Net sales

 

7 396

 

6 348

 

29 371

 

Cost of sales

 

-4 657

 

-3 772

 

-18 179

 

Research and development expenses

 

-919

 

-864

 

-3 776

 

Selling and marketing expenses

 

-557

 

-520

 

-2 564

 

Administrative, general and other expenses

 

-145

 

-149

 

-578

 

One-time item

 

 

 

148

 

Amortization of goodwill

 

 

-24

 

-96

 

 

 

 

 

 

 

 

 

Operating profit

 

1 118

 

1 019

 

4 326

 

Share of results of associated companies

 

-4

 

-4

 

-26

 

Financial income and expenses

 

78

 

76

 

405

 

 

 

 

 

 

 

 

 

Profit before tax and minority interests

 

1 192

 

1 091

 

4 705

 

Tax

 

-320

 

-353

 

-1 446

 

 

 

 

 

 

 

 

 

Profit before minority interests

 

872

 

738

 

3 259

 

Profit attributable to minority interests

 

-9

 

-9

 

-67

 

 

 

 

 

 

 

 

 

Profit attributable to equity holders of the parent

 

863

 

729

 

3 192

 

 

 

 

 

 

 

 

 

Earnings per share, EUR

 

 

 

 

 

 

 

(for profit attributable to the equity holders  of the parent)

 

 

 

 

 

 

 

Basic

 

0.19

 

0.16

 

0.69

 

Diluted

 

0.19

 

0.16

 

0.69

 

 

 

 

 

 

 

 

 

Average number of shares (1 000 shares)

 

 

 

 

 

 

 

Basic

 

4 459 302

 

4 679 708

 

4 593 196

 

Diluted

 

4 467 035

 

4 683 116

 

4 600 337

 

 

 

 

 

 

 

 

 

Depreciation and amortization, total

 

180

 

215

 

868

 

 

 

 

 

 

 

 

 

Share-based compensation expense, total

 

11

 

13

 

62

 

 


*Nokia’s Q1 and full-year 2004 financial accounts now reflect the retrospective implementation of IFRS 2 and IAS 39R

 

10



 

 CONSOLIDATED BALANCE SHEET, IFRS, EUR million (unaudited)

 

 

 

31.03.2005

 

Revised*
31.03.2004

 

Revised*
31.12.2004

 

ASSETS

 

 

 

 

 

 

 

Fixed assets and other non-current assets

 

 

 

 

 

 

 

Capitalized development costs

 

259

 

501

 

278

 

Goodwill

 

90

 

162

 

90

 

Other intangible assets

 

210

 

172

 

209

 

Property, plant and equipment

 

1 546

 

1 532

 

1 534

 

Investments in associated companies

 

187

 

77

 

200

 

Available-for-sale investments

 

184

 

382

 

169

 

Deferred tax assets

 

659

 

776

 

623

 

Long-term loans receivable

 

 

365

 

 

Other non-current assets

 

51

 

78

 

58

 

 

 

3 186

 

4 045

 

3 161

 

Current assets

 

 

 

 

 

 

 

Inventories

 

1 363

 

1 108

 

1 305

 

Accounts receivable

 

3 939

 

4 725

 

4 382

 

Prepaid expenses and accrued income

 

1 252

 

1 288

 

1 429

 

Short-term loans receivable

 

260

 

369

 

595

 

Available-for-sale investments

 

75

 

818

 

255

 

Available-for-sale investments, liquid assets

 

9 067

 

7 864

 

9 085

 

Available-for-sale investments, cash equivalents

 

2 330

 

2 298

 

1 367

 

Bank and cash

 

1 169

 

1 235

 

1 090

 

 

 

19 455

 

19 705

 

19 508

 

Total assets

 

22 641

 

23 750

 

22 669

 

SHAREHOLDERS’ EQUITY AND LIABILITIES

 

 

 

 

 

 

 

Capital and reserves attributable to the Company’s equity holders

 

 

 

 

 

 

 

Share capital

 

280

 

288

 

280

 

Share issue premium

 

2 374

 

2 323

 

2 366

 

Treasury shares

 

-2 672

 

-2 016

 

-2 022

 

Translation differences

 

-125

 

-88

 

-126

 

Fair value and other reserves

 

-45

 

108

 

13

 

Retained earnings 1)

 

13 113

 

13 272

 

13 720

 

 

 

12 925

 

13 887

 

14 231

 

Minority interests

 

152

 

168

 

168

 

Total equity

 

13 077

 

14 055

 

14 399

 

Long-term liabilities

 

 

 

 

 

 

 

Long-term interest-bearing liabilities

 

19

 

19

 

19

 

Deferred tax liabilities

 

173

 

212

 

179

 

Other long-term liabilities

 

97

 

68

 

96

 

 

 

289

 

299

 

294

 

Current liabilities

 

 

 

 

 

 

 

Short-term borrowings

 

308

 

532

 

215

 

Current portion of long-term debt

 

 

87

 

 

Accounts payable

 

2 889

 

2 579

 

2 669

 

Accrued expenses 1)

 

3 580

 

3 804

 

2 604

 

Provisions

 

2 498

 

2 394

 

2 488

 

 

 

9 275

 

9 396

 

7 976

 

Total shareholders’ equity and liabilities

 

22 641

 

23 750

 

22 669

 

Interest-bearing liabilities

 

327

 

638

 

234

 

Shareholders’ equity per share, EUR

 

2.92

 

2.98

 

3.17

 

Number of shares (1 000 shares) (2)

 

4 433 043

 

4 662 473

 

4 486 941

 

 


*Nokia’s financial accounts for the periods ending 31 March, 2004 and 31 December 2004 now reflect the retrospective implementation of IFRS 2 and IAS 39R.

1) Dividends to Nokia shareholders, EUR 1 463 million in 2005 (EUR 1 398 million in 2004), were booked as a liability at the end

Of the first quarter. The impact on cash flow will be shown in the second quarter. 2) Shares owned by Group companies are excluded

 

11



 

 

CONSOLIDATED CASH FLOW STATEMENT, IFRS, EUR million (unaudited)

 

 

 

1-3/2005

 

Revised*
1-3/2004

 

Revised*
1-12/2004

 

Cash flow from operating activities

 

 

 

 

 

 

 

Net profit

 

863

 

729

 

3 192

 

Adjustments, total

 

452

 

591

 

2 027

 

Net profit before change in net working capital

 

1 315

 

1 320

 

5 219

 

Change in net working capital

 

180

 

-216

 

273

 

Cash generated from operations

 

1 495

 

1 104

 

5 492

 

Interest received

 

86

 

107

 

204

 

Interest paid

 

-7

 

-6

 

-26

 

Other financial income and expenses, net received

 

33

 

173

 

41

 

Income taxes paid

 

-259

 

-429

 

-1 368

 

Net cash from operating activities

 

1 348

 

949

 

4 343

 

 

 

 

 

 

 

 

 

Cash flow from investing activities

 

 

 

 

 

 

 

Acquisition of Group companies, net of acquired cash

 

 

 

 

Purchase of current available-for-sale investments

 

-2 565

 

-1 591

 

-10 318

 

Purchase of non-current available-for-sale investments

 

-9

 

-253

 

-388

 

Purchase of shares in associated companies

 

-11

 

-1

 

-109

 

Additions in capitalized development costs

 

-33

 

-27

 

-101

 

Proceeds from repayments and sale of long-term loans receivable

 

 

 

368

 

Proceeds from (+), payment (-) of other long-term receivables

 

-6

 

-4

 

2

 

Proceeds from (+), payment (-) short-term loan receivables

 

264

 

-4

 

66

 

Capital expenditures

 

-112

 

-80

 

-548

 

Proceeds from disposal of Group companies, net of disposed cash

 

5

 

 

1

 

Proceeds from sale of current available-for-sale investments, liquid assets

 

2 552

 

2 267

 

9 737

 

Proceeds from sale of current available-for-sale investments

 

174

 

 

587

 

Proceeds from sale of non-current available-for-sale investments

 

 

2

 

346

 

Proceeds from sale of fixed assets

 

1

 

5

 

6

 

Dividends received

 

 

2

 

22

 

Net cash from/used in investing activities

 

260

 

316

 

-329

 

 

 

 

 

 

 

 

 

Cash flow from financing activities

 

 

 

 

 

 

 

Purchase of treasury shares

 

-649

 

-642

 

-2 648

 

Proceeds from long-term borrowings

 

1

 

 

1

 

Repayment of long-term borrowings

 

 

-1

 

-3

 

Proceeds from (+), payment of (-) of short-term borrowings

 

107

 

128

 

-255

 

Dividends paid

 

-35

 

 

-1 413

 

Net cash used in financing activities

 

-576

 

-515

 

-4 318

 

Foreign exchange adjustment

 

10

 

-1

 

-23

 

 

 

 

 

 

 

 

 

Net increase/decrease in cash and cash equivalents

 

1 042

 

749

 

-327

 

Cash and cash equivalents at beginning of period

 

2 457

 

2 784

 

2 784

 

Cash and cash equivalents at end of period

 

3 499

 

3 533

 

2 457

 

 


*Nokia’s Q1 and full-year 2004 financial accounts now reflect the retrospective implementation of IFRS 2 and IAS 39R

NB: The figures in the consolidated cash flow statement cannot be directly traced from the balance sheet

without additional information as a result of acquisitions and disposals of subsidiaries and net foreign

exchange differences arising on consolidation.

 

12



 

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY, IFRS, EUR million (unaudited)

 

 

 

Share
capital

 

Share
issue
premium

 

Treasury
shares

 

Translation
differences

 

Fair value
and other
reserves

 

Retained
earnings

 

Before
minority

 

Minority
interests

 

Total
equity

 

Balance at December 31, 2003

 

288

 

2 272

 

-1 373

 

-85

 

93

 

13 953

 

15 148

 

164

 

15 312

 

Impact of implementing IFRS2

 

 

 

41

 

 

 

 

 

 

 

 

 

-41

 

 

 

Impact of implementing IAS 39R

 

 

 

 

 

 

 

 

 

 

 

-13

 

13

 

 

 

Revised Balance December 31, 2003

 

288

 

2 313

 

-1 373

 

-85

 

80

 

13 925

 

15 148

 

164

 

15 312

 

Stock options exercised related to acquisitions

 

 

 

-3

 

 

 

 

 

 

 

 

 

-3

 

 

 

-3

 

Share-based compensation

 

 

 

13

 

 

 

 

 

 

 

 

 

13

 

 

 

13

 

Acquisition of treasury shares

 

 

 

 

 

-649

 

 

 

 

 

 

 

-649

 

 

 

-649

 

Reissuance of treasury shares

 

 

 

 

 

6

 

 

 

 

 

 

 

6

 

 

 

6

 

Dividend

 

 

 

 

 

 

 

 

 

 

 

-1 398

 

-1 398

 

 

 

-1 398

 

Translation differences

 

 

 

 

 

 

 

9

 

 

 

 

 

9

 

-1

 

8

 

Net investment hedge gains

 

 

 

 

 

 

 

-12

 

 

 

 

 

-12

 

 

 

-12

 

Cash flow hedges, net of tax, revised

 

 

 

 

 

 

 

 

 

-19

 

 

 

-19

 

 

 

-19

 

Available-for-sale investments,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

net of tax

 

 

 

 

 

 

 

 

 

47

 

 

 

47

 

 

 

47

 

Other increase, net

 

 

 

 

 

 

 

 

 

 

 

16

 

16

 

-4

 

12

 

Net profit, revised

 

 

 

 

 

 

 

 

 

 

 

729

 

729

 

9

 

738

 

Revised balance at March 31, 2004

 

288

 

2 323

 

-2 016

 

-88

 

108

 

13 272

 

13 887

 

168

 

14 055

 

Balance at December 31, 2004

 

280

 

2 272

 

-2 022

 

-126

 

69

 

13 765

 

14 238

 

168

 

14 406

 

Impact of implementing IFRS2

 

 

 

94

 

 

 

 

 

 

 

-101

 

-7

 

 

 

-7

 

Impact of implementing IAS 39R

 

 

 

 

 

 

 

 

 

-56

 

56

 

 

 

 

 

Revised balance December 31, 2004

 

280

 

2 366

 

-2 022

 

-126

 

13

 

13 720

 

14 231

 

168

 

14 399

 

Stock options exercised related to acquisitions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax benefit on stock options exercised

 

 

 

-3

 

 

 

 

 

 

 

 

 

-3

 

 

 

-3

 

Share-based compensation

 

 

 

11

 

 

 

 

 

 

 

 

 

11

 

 

 

11

 

Acquisition of treasury shares

 

 

 

 

 

-652

 

 

 

 

 

 

 

-652

 

 

 

-652

 

Reissuance of treasury shares

 

 

 

 

 

2

 

 

 

 

 

 

 

2

 

 

 

2

 

Dividend

 

 

 

 

 

 

 

 

 

 

 

-1 463

 

-1 463

 

-35

 

-1 498

 

Translation differences

 

 

 

 

 

 

 

28

 

 

 

 

 

28

 

3

 

31

 

Net investment hedge losses

 

 

 

 

 

 

 

-27

 

 

 

 

 

-27

 

 

 

-27

 

Cash flow hedges, net of tax

 

 

 

 

 

 

 

 

 

-21

 

 

 

-21

 

 

 

-21

 

Available-for-sale investments, net of tax

 

 

 

 

 

 

 

 

 

-37

 

 

 

-37

 

 

 

-37

 

Other increase/decrease, net

 

 

 

 

 

 

 

 

 

 

 

-7

 

-7

 

7

 

 

Net profit

 

 

 

 

 

 

 

 

 

 

 

863

 

863

 

9

 

872

 

Balance at March 31, 2005

 

280

 

2 374

 

-2 672

 

-125

 

-45

 

13 113

 

12 925

 

152

 

13 077

 

 


NB:Nokia’s Q1 and full-year 2004 financial accounts now reflect the retrospective implementation of IFRS 2 and IAS 39R

 

13



 

COMMITMENTS AND CONTINGENCIES, EUR million (unaudited)

 

 

 

GROUP

 

 

 

31.03.05

 

31.03.04

 

31.12.04

 

Collateral for own commitments

 

 

 

 

 

 

 

Property under mortgages

 

18

 

18

 

18

 

Assets pledged

 

11

 

13

 

11

 

Collateral given on behalf of other companies

 

 

 

 

 

 

 

Securities pledged

 

 

28

 

 

Contingent liabilities on behalf of Group companies

 

 

 

 

 

 

 

Other guarantees

 

250

 

214

 

275

 

Contingent liabilities on behalf of other companies

 

 

 

 

 

 

 

Guarantees for loans

 

3

 

5

 

3

 

Other guarantees

 

3

 

3

 

2

 

Leasing obligations

 

600

 

716

 

611

 

Financial commitments

 

 

 

 

 

 

 

Customer financing

 

56

 

394

 

56

 

 

NOTIONAL AMOUNTS OF DERIVATIVE FINANCIAL INSTRUMENTS, EUR million (1) (unaudited)

 

 

 

31.03.2005

 

31.03.2004

 

31.12.2004

 

 

 

 

 

 

 

 

 

Foreign exchange forward contracts (2)

 

26 987

 

11 034

 

10 744

 

Currency options bought (2)

 

154

 

3 688

 

715

 

Currency options sold (2)

 

91

 

3 127

 

499

 

Interest rate swaps and futures

 

711

 

35

 

 

Credit default swaps (3)

 

200

 

 

200

 

Cash settled equity swaps (4)

 

 

233

 

 

Cash settled equity options (4)

 

147

 

228

 

237

 

 


1) Includes the gross amount of all notional values for contracts that have not yet been settled or cancelled.

The amount of notional value outstanding is not necessarily a measure or indication of market risk, as the

exposure of certain contracts may be offset by that of other contracts.

2) Notional amounts include contracts used to hedge the shareholders’ equity of foreign subsidiaries

3) Credit default swaps include contracts used to hedge counterparty credit risks.

4) Cash settled equity and options can be used to hedge risks relating to incentive programs and

investment activities.

 

1 EUR = 1.323 USD

 

14



 

NEW IFRS STANDARDS AND THEIR IMPACT ON NOKIA 2004 AND FUTURE ACCOUNTS

 

International Financial Reporting Standards (IFRS) were subject to changes as of January 1, 2005. The following covers those rules applicable to Nokia. The total impact of the changes resulting from the retrospective implementation of the new rules to Nokia’s 2004 financial accounts were an increase of EUR 104 million on net sales, and a net decrease of EUR 4 million on operating profit. These result from the changes in IFRS 2 and IAS 39 Revised.

 

IFRS 2:  Share-based payments

IFRS 2 requires companies to recognize the cost of share-based awards to employees over the grant date to vesting date. The standard applies to awards granted since November 7, 2002 and not yet vested by January 1, 2005. The cost is assessed on a fair value basis using an option-pricing model.

 

For the Nokia 2004 accounts, this applies only to the 2003 stock option, and 2004 stock option, performance share and restricted share plans. The retrospective implementation of this change reduced the year 2004 operating profit by EUR 62 million.

 

The impact of this new rule will be seen in all relevant operating expenses lines.

 

IAS 39 Revised: Hedge accounting

IAS 39R no longer permits hedge accounting for treasury center foreign exchange netting, the method that Nokia has historically used to hedge foreign exchange risk. This change in the hedge accounting rules is retrospective for Nokia as an existing IFRS user.

 

The retrospective implementation of this change increased 2004 net sales by EUR 104 million and increased 2004 operating profit by EUR 58 million.

 

With effect from the beginning of this year, Nokia has revised its method of hedging foreign exchange risks to ensure hedge accounting treatment under the new rules.

 

IFRS 3: Business combinations, IAS 36 Revised: Impairment of assets, and IAS 38 Revised: Intangible assets

IFRS 3 calls for the discontinuation of goodwill amortization. IFRS 3 had no retrospective impact on Nokia’s 2004 financial accounts. At December 31, 2004 Nokia had EUR 90 million of goodwill on its balance sheet, which in the future will not be amortized, but will be subject to an annual impairment test in accordance with IAS 36R.

 

The impact of the retrospective implementation of IFRS 2 and IAS 39R on Nokia’s 2004 financial accounts can be found in the following tables.

 

15



 

IMPACT OF RETROSPECTIVE IMPLEMENTATION OF IFRS 2 AND IAS 39R

 

CONSOLIDATED PROFIT AND LOSS ACCOUNT, IFRS, EUR million (unaudited)

 

 

 

Previously

 

Impact of

 

 

 

 

 

reported

 

IFRS 2 &

 

Revised

 

 

 

1-3/2004

 

IAS 39 R

 

1-3/2004

 

 

 

 

 

 

 

 

 

Net sales

 

6 625

 

-277

 

6 348

 

Cost of sales

 

-3 943

 

171

 

-3 772

 

Research and development expenses

 

-855

 

-9

 

-864

 

Selling and marketing expenses

 

-517

 

-3

 

-520

 

Administrative, general and other expenses

 

-148

 

-1

 

-149

 

Amortization of goodwill

 

-24

 

 

 

-24

 

 

 

 

 

 

 

 

 

Operating profit

 

1 138

 

-119

 

1 019

 

Share of results of associated companies

 

-4

 

 

 

-4

 

Financial income and expenses

 

76

 

 

 

76

 

 

 

 

 

 

 

 

 

Profit before tax and minority interests

 

1 210

 

-119

 

1 091

 

Tax

 

-385

 

32

 

-353

 

 

 

 

 

 

 

 

 

Profit before minority interests

 

825

 

-87

 

738

 

Profit attributable to minority interests

 

-9

 

 

 

-9

 

 

 

 

 

 

 

 

 

Profit attributable to equity holders of the parent

 

816

 

-87

 

729

 

 

 

 

 

 

 

 

 

Earnings per share, EUR

 

 

 

 

 

 

 

Basic

 

0.17

 

-0.01

 

0.16

 

Diluted

 

0.17

 

-0.01

 

0.16

 

 

 

 

 

 

 

 

 

Average number of shares (1 000 shares)

 

 

 

 

 

 

 

Basic

 

4 679 708

 

 

 

4 679 708

 

Diluted

 

4 683 116

 

 

 

4 683 116

 

 

16



 

 

 

Previously

 

Impact of

 

 

 

Previously

 

Impact of

 

 

 

 

 

reported

 

IFRS 2 &

 

Revised

 

reported

 

IFRS 2 &

 

Revised

 

 

 

4-6/2004

 

IAS 39 R

 

4-6/2004

 

1-6/2004

 

IAS 39 R

 

1-6/2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

6 640

 

-177

 

6 463

 

13 265

 

-454

 

12 811

 

Cost of sales

 

-4 090

 

175

 

-3 915

 

-8 033

 

346

 

-7 687

 

Research and development expenses

 

-945

 

-12

 

-957

 

-1 800

 

-21

 

-1 821

 

Selling and marketing expenses

 

-673

 

-3

 

-676

 

-1 190

 

-6

 

-1 196

 

Administrative, general and other expenses

 

-91

 

-2

 

-93

 

-239

 

-3

 

-242

 

One-time item

 

90

 

 

 

90

 

90

 

 

 

90

 

Amortization of goodwill

 

-24

 

 

 

-24

 

-48

 

 

 

-48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

907

 

-19

 

888

 

2 045

 

-138

 

1 907

 

Share of results of associated companies

 

-6

 

 

 

-6

 

-10

 

 

 

-10

 

Financial income and expenses

 

135

 

 

 

135

 

211

 

 

 

211

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit before tax and minority interests

 

1 036

 

-19

 

1 017

 

2 246

 

-138

 

2 108

 

Tax

 

-315

 

2

 

-313

 

-700

 

34

 

-666

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit before minority interests

 

721

 

-17

 

704

 

1 546

 

-104

 

1 442

 

Minority interests

 

-9

 

 

 

-9

 

-18

 

 

 

-18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to equity holders of  the parent

 

712

 

-17

 

695

 

1 528

 

-104

 

1 424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share, EUR

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

0.15

 

 

0.15

 

0.33

 

-0.02

 

0.31

 

Diluted

 

0.15

 

 

0.15

 

0.33

 

-0.02

 

0.31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average number of shares (1 000 shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

4 620 853

 

 

 

4 620 853

 

4 650 281

 

 

 

4 650 281

 

Diluted

 

4 625 693

 

 

 

4 625 693

 

4 655 703

 

 

 

4 655 703

 

 

17



 

 

 

Previously

 

Impact of

 

 

 

Previously

 

Impact of

 

 

 

 

 

reported

 

IFRS 2 &

 

Revised

 

reported

 

IFRS 2 &

 

Revised

 

 

 

7-9/2004

 

IAS 39 R

 

7-9/2004

 

1-9/2004

 

IAS 39 R

 

1-9/2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

6 939

 

165

 

7 104

 

20 204

 

-289

 

19 915

 

Cost of sales

 

-4 410

 

-108

 

-4 518

 

-12 443

 

238

 

-12 205

 

Research and development expenses

 

-880

 

-11

 

-891

 

-2 680

 

-32

 

-2 712

 

Selling and marketing expenses

 

-578

 

-3

 

-581

 

-1 768

 

-9

 

-1 777

 

Administrative, general and other expenses

 

-139

 

-2

 

-141

 

-378

 

-5

 

-383

 

One-time item

 

20

 

 

 

20

 

110

 

 

 

110

 

Amortization of goodwill

 

-24

 

 

 

-24

 

-72

 

 

 

-72

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

928

 

41

 

969

 

2 973

 

-97

 

2 876

 

Share of results of associated companies

 

-6

 

 

 

-6

 

-16

 

 

 

-16

 

Financial income and expenses

 

78

 

 

 

78

 

289

 

 

 

289

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit before tax and minority interests

 

1 000

 

41

 

1 041

 

3 246

 

-97

 

3 149

 

Tax

 

-324

 

-16

 

-340

 

-1 024

 

18