1 © 2006 Nokia

Financial Review

Rick SimonsonChief Financial Officer

2 © 2006 Nokia

Growth -more to come

3 © 2006 Nokia

Year on year growth rates for 2005 and 2006 (1st 9 months of year)

* 1st 9 months of 2005 and 1st 9 months of 2006** Excluding special items

20%

28% 28%23%

34%29%

0%

10%

20%

30%

40%

Net Sales Units EPS**

2005*2006*

4 © 2006 Nokia

Not a commodity - Winners need to master….

• Scale

• Brand

• Manufacturing and logistic challenges

• Technology

• Great and broad product portfolio

• Cost structure

• Quality

• IPR

5 © 2006 Nokia

Mobile device industry consolidation continues

10%

20%

30%

40%

50%

60%

70%

80%

90%

2000 2001 2002 2003 2004 2005 Q3 2006

Glob

al H

ands

et M

arke

t Sha

re

ROW

Top 5

Nokia estimates

6 © 2006 Nokia

Acceleration in consolidation: Share of the Top 2

40%

45%

50%

55%

60%

2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06

Nokia estimates

7 © 2006 Nokia

10%

15%

20%

25%

30%

35%

40%

2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06

Nokia vs. Motorola: global device unit share

Nokia estimates

Nokia

Motorola

8 © 2006 Nokia

How could Nokia gain unit market share in 2007?Combination of #1 - #3 Could Yield 1%+ Share Gain

• #1: Mathematical Benefit – Nokia’s Strong Position in Emerging Markets• Assumption:

• Emerging markets’ growth again double the developed markets in 2007

• Nokia’s share stable in 2007 in both emerging markets and developed markets from Q306 levels

• #2: Mathematical Benefit - GSM/WCDMA vs. CDMA• Assumption:

• GSM/WCDMA grows significantly faster than CDMA in 2007

• Nokia’s share stable in 2007 in GSM/WCMDA from Q306 levels and mid-single digit share in CDMA in 2007

• #3: Smaller Vendors Losing Share• Assumptions

• BenQ/Siemens have 2-3% global share (predominately in Latin America and Europe)

• The share of the non-Top 5 global vendors is approximately 15% and is highly fragmented

9 © 2006 Nokia

Why are we in the emerging markets?

Percentage of Total Nokia Device Gross Profit, 1Q-3Q06

India and China: ~ 20%

Rest of World: ~ 80%

10 © 2006 Nokia

Market value of adjacent markets

0

10,000

20,000

30,000

40,000

50,000

2006E 2007E 2008E

$ (M) Audio Players Cameras Navigation

Source: IDC Audio Players: portable digital music players and CD playersCameras: digital still cameras, digital and analog camcordersNavigation: portable GPS device (non-PDA)

11 © 2006 Nokia

Financial targets

12 © 2006 Nokia

Nokia financial targets

* Approx. estimates for full year** Next 1 to 2 years

10%+Nokia Siemens Networks

17%Devices (MP & M)

15%Operating MarginTARGET**

26%26%Tax Rate~700~700Capex (m EUR)~725~725Depr. and Amort. (m EUR)

2007E *2006E*

¤ Does not include full impact of Nokia Siemens Networks

¤

¤

13 © 2006 Nokia

Nokia R&D and efficiency targets

Efficiency targets• Ratios: Gross Margin to R&D and Gross Margin to Sales & Marketing targeted to

improve in 2007 vs. 2006

14%

8%

9-10%

Existing target: by end of 2006

19%

11%

13%

2004

18%

8%

11%

2005

NO

YES

YES

Report card: Estimated end

of 2006

Infrastructure

Devices

Nokia

R&D targets (% of sales)

14 © 2006 Nokia

Nokia aligned with shareholder interests

15 © 2006 Nokia

Return on Equity: Nokia vs. Tech Peers

*15 largest members of S&P Global 1200 Information Technology Sector Index

Calculation: last reported 12 months, ROE = Pro forma net income / Total Equity

Source: Company reports and Bloomberg

0%

5%

10%

15%

20%

25%

30%

35%

40%

Nokia Motorola Ericsson Broader Tech Index*

16 © 2006 Nokia

Operating efficiency – Cash flow

Euro (M)

0

1000

2000

3000

4000

5000

2004 2005 Q1–Q3 2006Operating Cash Flow = Net cash from operating activitiesFree cash flow = Operating cash flow - CAPEX

Free Cash FlowOperating Cash Flow

17 © 2006 Nokia

Distribution of excess cash to shareholders

4

5

6

7

8

9

10

11

12

13

Q403 Q104 Q204 Q304 Q404 Q105 Q205 Q305 Q405 Q106 Q206 Q306

Net C

ash

(Eur

o bi

llion

s)

3800

3900

4000

4100

4200

4300

4400

4500

4600

4700

4800

Dilu

ted

shar

e co

unt (

mill

ions

)

Cash level

Share count*

Down 14%

* Diluted

18 © 2006 Nokia

Dividends: What are Nokia’s peers doing?

Dividend payout ratio (5-year average)

Source: Bloomberg (last 5 fiscal years)* Last two years

0%

10%

20%

30%

40%

50%

Nokia HPSie

mens

Erics

son

Motoro

la

Inte

lQualco

mm

Microso

ft

Cisco Dell

Luce

ntNorte

l

Yield: ~2.5%Growth: 10%*

Dividend/Net Income ratio for Nokia’s peer group has traditionally been around 20%

19 © 2006 Nokia

Distributions to net income

Distributions to net income in 2005

0%

50%

100%

150%

200%

250%

Dell HPMicr

osoft

NokiaCis

co

Inte

lQualco

mm

Siem

ensMoto

rola

Ericss

onLu

cent

Nortel

Source: Bloomberg and company reports, latest reported fiscal year end

Share buybacks 2005Dividends 2005

20 © 2006 Nokia

Stock option dilution

Source: Nokia as per June 2006, other company reports latest reported fiscal year end Dilution assuming all outstanding options are exercisedDilution = Options outstanding / (Options outstanding + shares outstanding)

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Erics

son

Siem

ens

Nokia HPNorte

lMicr

osoft

Luce

ntMoto

rola

Qualcom

m Dell

IBM

Inte

lCis

co

21 © 2006 Nokia

Navigation and Mapping

Digital Music Platform

Email and Device Management

Reinvesting in the business

22 © 2006 Nokia

Summary

• Nokia is Growing – More to Come

• Financial Targets – Clear, Ambitious and Achievable

• Nokia is Aligned with Shareholder Interests

23 © 2006 Nokia