Nokia 2006 Annual Report Download - page 27

Organizational structure
In 2006, Nokia had four business groups: Mobile Phones, Multimedia, Enterprise Solutions and
Networks, which are described in more detail below. Around the end of March 2007, our Networks
business group is expected to become part of a new company, Nokia Siemens Networks, owned by
Nokia and Siemens and consolidated by Nokia. Unless otherwise indicated, all references in this
annual report on Form 20F to ‘‘Networks’’ are to our Networks business group prior to the
formation of Nokia Siemens Networks.
For more information on Nokia Siemens Networks, see
‘‘Item 4.B Business Overview—Nokia Siemens Networks.’’
Various horizontal groups support and service Nokia’s business groups. These horizontal groups are
reported under common group functions.
)Customer and Market Operations is responsible for sales and marketing, manufacturing and
logistics, and sourcing and procurement for mobile devices from Mobile Phones, Multimedia
and Enterprise Solutions.
)Technology Platforms delivers leading technologies and platforms to Nokia’s business groups
and external customers.
)Various other Nokiawide horizontal units drive and manage specific Nokia assets. These
include Brand and Design, Developer Support, Research and Venturing, and Business
Infrastructure.
)Corporate Functions supports Nokia’s businesses with companywide strategies and services.
For a breakdown of our net sales and other operating results by category of activity and
geographical location, see Note 2 to our consolidated financial statements included in Item 18 of this
annual report on Form 20F.
Other
Nokia is not a capitalintensive company, but rather invests in research and development, marketing,
and building the Nokia brand. We expect the amount of capital expenditure during 2007 to be
approximately EUR 700 million, and to be funded from our cash flow from operations. This estimate
for 2007 does not include the full impact of Nokia Siemens Networks. During 2006, Nokia’s capital
expenditures totaled EUR 650 million, compared with EUR 607 million in 2005. For further
information regarding capital expenditures see ‘‘Item 5.A Operating Results’’ and for a description of
capital expenditures by business segment see Note 2 to our consolidated financial statements
included in Item 18 of this annual report on Form 20F.
Nokia maintains listings on four major securities exchanges. The principal trading markets for the
shares are the Helsinki Stock Exchange, in the form of shares, and the New York Stock Exchange, in
the form of American Depositary Shares, or ADSs. In addition, our shares are listed on the Frankfurt
stock exchange, and Stockholm stock exchange in the form of Swedish Depository Receipts, or SDRs.
In January 2007, Nokia announced that it has decided to apply for the delisting of Nokia SDRs from
the Stockholm Stock Exchange and the estimated last day of trading of Nokia SDRs on the Stockholm
Stock Exchange is June 1, 2007.
Nokia’s principal executive office is located at Keilalahdentie 4, P.O. Box 226, FIN00045 Nokia Group,
Espoo, Finland and our telephone number is [phone]8000.
4.B Business Overview
Strategy
The strategy Nokia established in 2006 focuses on five key areas:
)Create winning devices
)Embrace consumer Internet services
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