Nokia 2004 Annual Report Download - page 64
Download and view the complete annual report
Please find page 64 of the 2004 Nokia annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54 -
55 -
56 -
57 -
58 -
59 -
60 -
61 -
62 -
63 -
64 -
65 -
66 -
67 -
68 -
69 -
70 -
71 -
72 -
73 -
74 -
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
 |
 |
Enterprise Solutions
The following table sets forth selective line items and the percentage of net sales that they
represent for the Enterprise Solutions business group for the fiscal years 2003 and 2004.
Year ended Year ended Percentage
December 31, Percentage of December 31, Percentage of Increase/
2004 Net Sales 2003 Net Sales (decrease)
(EUR millions, except percentage data)
Net sales .................. 830 100.0% 529 100.0% 57%
Cost of sales ................ (464) (55.9)% (281) (53.1)% 65%
Gross profit ................ 366 44.1% 248 46.9% 48%
Research and development
expenses ................. (298) (35.9)% (235) (44.4)% 27%
Selling, general and
administrative expenses .... (261) (31.5)% (151) (28.6)% 73%
Amortization of goodwill ..... (6) (0.7)% (3) (0.6)% 100%
Operating (loss) ............. (199) (24.0)% (141) (26.7)% 41%
Enterprise Solutions business group 2004 net sales grew 57% to EUR 830 million compared with
EUR 529 million in 2003 primarily as a result of increased sales of business-focused mobile
devices.
In Enterprise Solutions gross profit increased by 48% to EUR 366 million due to higher sales,
compared with EUR 248 million in 2003. This represented a gross margin of 44.1% in 2004
compared with a gross margin of 46.9% in 2003.
In Enterprise Solutions R&D expenses increased by 27% to EUR 298 million due to wider range of
new products compared with 2003 (EUR 235 million) representing 35.9% of its net sales (44.4% of
its net sales compared with 2003).
In 2004, Enterprise Solutions SG&A expenses increased by 73% to EUR 261 million as a result of
increase in marketing and advertising expenses due to introduction of new products, compared
with EUR 151 million in 2003. In 2004 SG&A expenses represented 31.5% of Enterprise Solutions
net sales (28.6% of Enterprise Solutions net sales compared with 2003).
Enterprise Solutions operating loss increased 41% to EUR 199 million in 2004 compared with a
loss of EUR 141 million in 2003, with an operating margin of -24.0%, an operating margin of
-26.7% in 2003. The operating loss was in line with our expectations.
63