Nokia 2007 Annual Report Download - page 65

Germany and close our Bochum site by mid2008. We plan to move the production to our other, more
costcompetitive sites in Europe. We also intend to discontinue other nonproduction activities at the
Bochum site. We also announced plans to sell our Bochumbased line fit automotive business, and we
are in negotiations to sell the adaptation software R&D entity also located in Bochum. The planned
closure of the site in Bochum is estimated to affect approximately 2 300 Nokia employees. We are
currently evaluating the accounting impact of the closure of the Bochum site and expect to recognize
restructuring and other charges in 2008.
Acquisition of NAVTEQ
On October 1, 2007, Nokia and NAVTEQ announced a definitive agreement for Nokia to acquire
NAVTEQ, a leading provider of comprehensive digital map information for automotive navigation
systems, mobile navigation devices, Internetbased mapping applications, and government and
business solutions. The NAVTEQ acquisition is still pending and subject to customary closing
conditions, including regulatory approvals. For the year ended December 31, 2007, NAVTEQ reported
revenues of USD 853 million (EUR 591 million), net profit of USD 173 million (EUR 120 million), total
assets of USD 1 322 million (EUR 916 million) and shareholders’ equity of USD 1 007 million (EUR 697
million).
Acquisition of Apertio
On January 2, 2008, Nokia Siemens Networks announced the acquisition of the UKbased Subscriber
centric network specialist Apertio Ltd (“Apertio”) for approximately EUR 140 million. Apertio is a
leading provider of open realtime subscriber data platforms and applications built specifically for
mobile, fixed and converged telecommunications operators. The acquisition closed on February 11,
2008.
Acquisition of Trolltech
On January 28, 2008, Nokia and Norwaybased software provider Trolltech ASA (“Trolltech”)
announced that they have entered into an agreement that Nokia will make a public voluntary offer to
acquire Trolltech which offer has thereafter commenced. Trolltech is a recognized software provider
with worldclass software development platforms and frameworks. Completion of the acquisition is
subject to customary closing conditions, including acceptance by shareholders of Trolltech
representing more than 90% of the fully diluted share capital and the necessary regulatory approvals.
For year ended December 31, 2007, Trolltech reported unaudited revenues 218 million Norwegian
kroner (EUR 27 million) net loss of 38 million Norwegian kroner (EUR 5 million), total assets of
210 million Norwegian kroner (EUR 26 million) and shareholders’ equity of 120 million Norwegian
kroner (EUR 15 million).
See Note 33 to our consolidated financial statements included in Item 18 of this annual report for
further information relating to these subsequent events.
Certain Other Factors
United States Dollar
In 2007, the US dollar depreciated against the euro by 10.0% (when measured by the yearend rate
compared to the yearend rate for the previous year). When measured by the average rate used to
record transactions in foreign currency for accounting purposes for the year compared with the
corresponding rate for the previous year, the US dollar depreciated against the euro by 9.1% in 2007.
The weaker US dollar on average had a negative impact on our net sales expressed in euros because
approximately 50% of our net sales are generated in US dollars and currencies closely following the
US dollar. However, the depreciation of the US dollar also contributed to a lower average product cost
as approximately 50% of the components we use are sourced in US dollars. To mitigate the impact of
changes in exchange rates on net sales as well as average product cost, we hedge all material
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