Introduction

• Who we are and what we produce?

Nokia is the world leader in mobility, driving the transformation and growth of the
converging Internet and communications industries. Nokia makes a wide range of
mobile devices and provides people with experiences in music, navigation, video,
television, imaging, games and business mobility through these devices. Nokia also
provides equipment, solutions and services for communications networks.

• What are our aim?

1. Our aim is to present Nokia company;
2. To show company‘s strenghts and weaknesses;
3. To introduce everybody with Nokia life.

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 Objectives

Our objectives are:

1.Nokia company clients and customers – loyal;
2.Nokia company products - the most popular;
3.Nokia operates - the most effective;
4.Best devices;
5.Smart devices.

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 Name of the company
Nokia is a small town on the banks of the Nokianvirta (Kokemäenjoki) River in the
region of Pirkanmaa and the province of Western Finland, some 15 km west of
Tampere. As of October 2006 it has a population of 29,685.

Nokia has been around long enough that its name is obscure even to most Finns. In
modern Finnish, noki means soot and nokia is the inflected plural of "soot", although
this form of the word is rarely if ever used. However, the name actually originates from
the archaic Finnish word nois (pl. nokia) or nokinäätä ("soot marten"), meaning sable.
After sable was hunted to extinction in Finland, the word was applied to any dark-
coated fur animal, such as the marten, which are found in the area to this day. The sable
is enshrined on the Nokia coat of arms.

The first literary reference to Nokia is in a 1505 document in connection with the Nokia
Manor.

Nokia was the setting of one of the largest battles in the Club War, a 1596 peasant
uprising against Swedish feudal lords. The peasants, unsurprisingly armed with clubs,
took up residence in Nokia Manor and won several skirmishes against the feudal
cavalry, but were decisively defeated by Klaus Fleming on January 1-2, 1597.
Thousands of clubmen were slain and their fled leader, Jaakko Ilkka, was captured a
few weeks later and executed. The Club War was the last major peasant revolt in
Finland, and it permanently consolidated the hold of the nation state. Much later, in the
Finnish Civil War (1918), Nokia (along with neighboring Tampere) was a Communist
stronghold and saw some combat.

Nokia used breached out to current heart of Tampere, the Pispala area was part of
Nokia's Suur-Pirkkala area. The Suur-Pirkkala were split into Pohjois- and Eteläis-
Pirkkala (Northern and Southern). In 1938 the name of Northern-Pirkkala was changed
into the city of Nokia and Southern-Pirkkala restored its original Pirkkala name.

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Pispala is currently one of the most viewed and visited special neighbourhoods in
Tampere, with houses on steep hill exceptionally tight and random built. History behind
it is that it was allowed to be built houses for working class since there was no law or
order until it was joined to Tampere town.

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 The history of Nokia company

The first Nokia century began with Fredrik Idestam's paper mill on the banks of the
Nokianvirta river. Between 1865 and 1967, the company would become a major
industrial force; but it took a merger with a cable company and a rubber firm to set the
new Nokia Corporation on the path to electronics...

1865: The birth of Nokia

Fredrik Idestam establishes a paper mill at the Tammerkoski Rapids in south-western
Finland, where the Nokia story begins.

1898: Finnish Rubber Works founded

Eduard Polón founds Finnish Rubber Works, which will later become Nokia's rubber
business.

1912: Finnish Cable Works founded

Arvid Wickström starts Finnish Cable Works, the foundation of Nokia's cable and
electronics businesses.

1937: Verner Weckman, industry heavyweight

Former Olympic wrestler Verner Weckman becomes President of Finnish Cable Works

1960: First electronics department

Cable Works establishes its first electronics department, selling and operating
computers.

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1962: First in-house electrical device
The Cable Works electronics department produces its first in-house electrical device - a
pulse analyzer for nuclear power plants.

1967: The merger

Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merge to create
Nokia Corporation.

The newly formed Nokia Corporation was ideally positioned for a pioneering role in the
early evolution of mobile communications. As European telecommunications markets
were deregulated and mobile networks became global, Nokia led the way with some
iconic products...

1979: Mobira Oy, early phone maker

Radio telephone company Mobira Oy begins life as a joint venture between Nokia and
leading Finnish television maker Salora.

1981: The mobile era begins

Nordic Mobile Telephone (NMT), the first international mobile phone network, is built.

1982: Nokia makes its first digital telephone switch

The Nokia DX200, the company’s first digital telephone switch, goes into operation.

1984: Mobira Talkman launched

Nokia launches the Mobira Talkman portable phone.

1987: Mobira Cityman – birth of a classic

Nokia launches the Mobira Cityman, the first handheld NMT phone.

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1991: GSM – a new mobile standard opens up
Nokia equipment is used to make the world’s first GSM call.

In 1992, Nokia decided to focus on its telecommunications business. This was probably
the most important strategic decision in its history.

As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the head of
the mobile telephone industry’s global boom – and made it the world leader before the
end of the decade...

1992: Jorma Ollila becomes President and CEO

Jorma Ollila becomes President and CEO of Nokia, focusing the company on
telecommunications.

1992: Nokia’s first GSM handset

Nokia launches its first GSM handset, the Nokia 1011.

1994: Nokia Tune is launched

Nokia launches the 2100, the first phone to feature the Nokia Tune.

1994: World’s first satellite call

The world’s first satellite call is made, using a Nokia GSM handset.

1997: Snake – a classic mobile game

The Nokia 6110 is the first phone to feature Nokia’s Snake game.

1998: Nokia leads the world

Nokia becomes the world leader in mobile phones.

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 1999: The Internet goes mobile
Nokia launches the world's first WAP handset, the Nokia 7110.

Nokia’s story continues with 3G, mobile multiplayer gaming, multimedia devices and a
look to the future...

2002: First 3G phone

Nokia launches its first 3G phone, the Nokia 6650.

2003: Nokia launches the N-Gage

Mobile gaming goes multiplayer with the N-Gage.

2005: The Nokia Nseries is born

Nokia introduces the next generation of multimedia devices, the Nokia Nseries.

2005: The billionth Nokia phone is sold

Nokia sells its billionth phone – a Nokia 1100 – in Nigeria. Global mobile phone
subscriptions pass 2 billion.

2006: A new President and CEO – Nokia today

Olli-Pekka Kallasvuo becomes Nokia’s President and CEO; Jorma Ollila becomes
Chairman of Nokia’s board. Nokia and Siemens announce plans for Nokia Siemens
Networks.

2007
Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networks
commences operations. Nokia launches Ovi, its new internet services brand.

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 2008
Nokia's three mobile device business groups and the supporting horizontal groups are
replaced by an integrated business segment, Devices & Services.

Challenges of growth

In the 1980s, during the era of its CEO Kari Kairamo, Nokia expanded into new fields,
mostly by acquisitions. In the late 1980s and early 1990s, the corporation ran into
serious financial problems, a major reason being its heavy losses by the television
manufacturing division and businesses that were just too diverse. These problems, and a
suspected total burnout, probably contributed to Kairamo taking his own life in 1988.
After Kairamo's death, Simo Vuorilehto became Nokia's Chairman and CEO. In 1990–
1993, Finland underwent severe economic depression, which also struck Nokia. Under
Vuorilehto's management, Nokia was severely overhauled. The company responded by
streamlining its telecommunications divisions, and by divesting itself of the television
and PC divisions.

Probably the most important strategic change in Nokia's history was made in 1992,
however, when the new CEO Jorma Ollila made a crucial strategic decision to
concentrate solely on telecommunications. Thus, during the rest of the 1990s, the
rubber, cable and consumer electronics divisions were gradually sold as Nokia
continued to divest itself of all of its non-telecommunications businesses.

As late as 1991, more than a quarter of Nokia's turnover still came from sales in
Finland. However, after the strategic change of 1992, Nokia saw a huge increase in
sales to North America, South America and Asia. The exploding worldwide popularity
of mobile telephones, beyond even Nokia's most optimistic predictions, caused a
logistics crisis in the mid-1990s. This prompted Nokia to overhaul its entire logistics
operation. By 1998, Nokia’s focus on telecommunications and its early investment in
GSM technologies had made the company the world's largest mobile phone
manufacturer. Between 1996 and 2001, Nokia’s turnover increased almost fivefold from
6.5 billion euros to 31 billion euros. Logistics continues to be one of Nokia's major
advantages over its rivals, along with greater economies of scale.

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Location and divisions
Nokia is a Finnish multinational communications corporation that is headquartered in
Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki.

It’s Nokia headquarter

Contacts

Nokia
Keilalahdentie 2-4
Fl-02150 Espoo, Finland
Phone: +358-7-1800-8000
Fax: +358-7-1803-8503

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 Corporate governance
The control and management of Nokia is divided among the shareholders at a general
meeting and the Group Executive Board (left) under the direction of the Board of
Directors (right). The Chairman and the rest of the Group Executive Board members are
appointed by the Board of Directors. Only the Chairman of the Group Executive Board
can belong to both, the Board of Directors and the Group Executive Board. The Board
of Directors' committees consist of the Audit Committee,the Personnel Committee and
the Corporate Governance and Nomination Committee.

Board of Directors

The Board decides on matters that, in relation to the Group's activities, are significant in
nature. Such matters include confirmation of the strategic guidelines, approval of the
periodic plans and decisions on major investments and divestments. The Board appoints
the CEO, who also acts as President, the Chairman and the members of Nokia's Group
Executive Board. The Board also confirms the remuneration of the President and CEO.

The roles and responsibilities of the Board and its committees are defined in the
Corporate Governance Guidelines and the committee charters. The Board's committees
consist of the Audit Committee, the Personnel Committee and the Corporate
Governance and Nomination Committee. The Board regularly reviews these guidelines
and charters in order to ensure that they appropriately comply with what the Board
believes to be best practices of corporate governance. The Board and each of its
committees conducts annual performance self-evaluations.

Group Executive Board

Nokia's articles of association provide for a Group Executive Board, which is

responsible for managing the operations of Nokia. The Chairman and the members of
the Group Executive Board are appointed by the Board of Directors. Only the Chairman
of the Group Executive Board can be a member of both the Board of Directors and the
Group Executive Board.

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Annual General Meeting
The shareholders of Nokia use their decision-making power in Nokia's general
meetings. The Annual General Meeting is usually held in each March, April or May.

Auditor
The independent auditor is elected annually by Nokia’s shareholders at the Annual
General Meeting. PricewaterhouseCoopers Oy was re-elected as Nokia’s independent
auditor for the fiscal year 2009 at the Annual General Meeting on April 23, 2009.

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 Company’s turnover

Nokia shareholder

Shareholders registered in Finland represented 11.87% and shareholders registered in

the name of a nominee represented 88.13% of the total number of shares of Nokia. The
number of registered shareholders was 119 143 on December 31, 2006. Each account
operator is included in this fi gure as only one registered shareholder.

Nominee registered shareholders include holders of American Depositary Receipts

(ADR) and Svenska Depåbevis (SDB). As of December 31, 2006 ADRs represented
28.75% and SDBs 2.54% of the total number of shares in Nokia.

During 2006, The Capital Group Companies, Inc., a holding company engaged in
investment management activities, informed Nokia that its holdings had exceeded 5%
of the share capital of Nokia on April 21, 2006, fallen below 5% on September 15, 2006
and again exceeded 5% on September 21, 2006. As of September 21, 2006, The Capital
Group Companies, Inc. and its subsidiaries held through their clients a total of 204 960
602 Nokia shares, which at that time corresponded to approximately 5.01% of the share
capital of Nokia. The holdings of The Capital Group Companies, Inc. consist of both
ADRs and ordinary skares.

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 The company‘s work perspective
• Nokia expects industry mobile device volumes in the fourth quarter 2009 to be
up sequentially.
• Nokia expects its mobile device market share in the fourth quarter 2009 to be
approximately at the same level sequentially.
• Nokia expects industry mobile device volumes to be approximately 1.12 billion
units in 2009, down approximately 7% from approximately 1.21 billion units
Nokia estimated for 2008. This is an update to Nokia’s earlier estimate of
industry mobile device volumes declining approximately 10% in 2009 from
2008 levels.
• Nokia expects its non-IFRS operating margin in Devices & Services in the
fourth quarter 2009 to be up by one percentage point or more sequentially.
• Nokia and Nokia Siemens Networks now expect the mobile infrastructure and
fixed infrastructure and related services market to decline approximately 5% in
Euro terms in 2009, from 2008 levels. This is an update to Nokia and Nokia
Siemens Networks earlier expected decline of approximately 10%.
• Nokia and Nokia Siemens Networks also now expect that Nokia Siemens
Networks market share will decline by more than previously expected in 2009,
compared with 2008. This is an update to Nokia and Nokia Siemens Networks
earlier expected moderate decline. Nokia and Nokia Siemens Networks continue
to see strong performance in its Services business unit expected to be offset by
declines in certain product businesses.

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 Number of employees and the areas
As the company has grown so have the dimensions of our work force. During 2006, our
employee number grew to approximately 68,000 persons coming from 120 nationalities.
Within our workplace profile, women account for 34 percent of all employees, with
12.5 percent holding senior management positions. The average employee age is 35
years, with 5.1 percent of our employees over 50 years. Of the 120 different
nationalities working at Nokia, 45 percent of them are represented in senior
management as coming from a non-Finnish ethnicity.

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 Encouraging employees
LiveLife

Our LiveLife program provides a common easily recognized umbrella for all our work-
life balance related offerings and services. It aims to energize and lift the spirit at the
work place. LiveLife promotes our employees’ needs and well-being providing various
activities in three areas: Health, Leisure and financial planning.

The health, safety and wellbeing of our employees is vital to the success of our
business. Our Occupational Health and Safety Policy sets out our commitment to
provide safe and healthy working conditions for all our employees and promote
wellbeing at work. We work with our contractors, suppliers and customers to
continuously monitor health and safety issues and meet our commitments.

Wellbeing

We encourage our employees to make use of Nokia products to increase their mobility
and work from home where possible in accordance to practices and rules. We held a
summit for employees to discuss new ways of working this year.

We do not discriminate against existing or potential employees with chronic health

conditions that do not prevent them from working. However, where applicable, new
recruits may be asked to complete a medical evaluation to ensure they are fit enough to
do their work safely.

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 Strenghts and weaknesses
Weaknesses:

• We have a lot of strong competitors;

• Although some wireless manufacturers are not as well known as Nokia, some of
them are developing exceptional phones that perform better than Nokia‘s, plus
or minus a few features;
• Every minute we can lose everything;
Strenghts:
• Brand loyalty;
• Developing market;
• High quality;
• The price connected to the quality.

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Financial and economical indices

March 2009

Change
2008 EURm 2007 EURm
%
Net sales 50 710 51 058 -1
Operating profit 4 966 7 985 -38
Profit before taxes 4 970 8 268 -40
Profit attributable to equity holders of
3 988 7 205 -45
the parent
Research & development expenses 5 968 5 636 6

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 Conclusions
To sum up, our company is known in all over the world also in Lithuania. This
company has a lot of products which are very popular and high quality.
Although Nokia company was established in 1865 years, it is well known until
nowadays.
Nokia company have huge perspectives and it profit is very high.

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 List of references
1. www.nokia.com (2009.11.02)
2. http://en.wikipedia.org/wiki/Nokia (2009.11.04 15:00)

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