Extending the Lead in APACExtending the Lead in APACUrpo KarjalainenSVP, Customer & Market OperationsAsia Pacific

Urpo KarjalainenSVP, Customer & Market OperationsAsia Pacific

2 © 2006 Nokia

0

10 0

20 0

30 0

20 0 3 20 0 4 20 0 5 20 0 6E 20 0 7E

Mo

bile

Dev

ice

Mar

ket V

olu

me

(m)

Source : Nokia estimates Market volumes

Strong growth continues in the APAC device market

>15%

3 © 2006 Nokia

The APAC Landscape

Source: EIU, UN Stats, Nokia Estimates

Population & GDP/Capita based on 2005 estimates

<5%Share of Nokia volume

<5%Nokia share

5%Subscription growth

5%Market volume growth

77%Mobile penetration

30GDP/capita (kUSD)

70%Urbanisation %

176Population (m)

2006 (Est.)

North East Asia

~50%Share of Nokia volume

>60%Nokia share

86%Subscription growth

77%Market volume growth

12%Mobile penetration

0.7GDP/capita (kUSD)

28%Urbanisation %

1285Population (m)

2006 (Est.)

South Asia

~40%Share of Nokia volume

>50%Nokia share

29%Subscription growth

24%Market volume growth

35%Mobile penetration

1.5GDP/capita (kUSD)

45%Urbanisation %

580Population (m)

2006 (Est.)

South East Asia

~10%Share of Nokia volume

~50%Nokia share

11%Subscription growth

2%Market volume growth

92%Mobile penetration

33GDP/capita (kUSD)

92%Urbanisation %

25Population (m)

2006 (Est.)

Australasia

4 © 2006 Nokia

JapanKorea

Share

Volume

IndiaIndonesiaIndochina

Bangladesh

AustraliaThailandMalaysia

Philippines Singapore

New Zealand

Different growth paths and potentials

5 © 2006 Nokia

1. Leveraging Brand

2. Experience Strategy

3. Efficiency & Productivity

1. Shaping Channel & Retail

2. Managing Product Mix

3. Targeting growth & market segments

1. Product Portfolio

2. Building Brand

3. Relationship Management

Grow Share

Volume & Value GrowthMaintain

Share

Volume

Different market strategies

6 © 2006 Nokia

Source: GfK (India, Singapore, Malaysia, Vietnam, Thailand, Philippines, Cambodia, Indonesia)

0%

20%

40%

6 0%

80%

H2 2004 H1 2005 H2 2005 H1 2006 Q 3 2006

Vo lu m e Sh a re Va lu e Sh a re

Maintaining strong volume and value share in SEA & India

7 © 2006 Nokia

• APAC-wide• #1 - Asia’s Top 1000 Brands

research by Synovate (Sept 2006)

• Platinum Award in Readers’Digest Trusted Brand Awards

Clear APAC brand leadership

8 © 2006 Nokia

• India• #11 and only MNC in top rankings - 2006

Business World - India’s Most Respected Businesses Survey + #1 in the consumer durables category

• #8 – 2006 India’s Great Place to Work list, Brand of the Year by the Confederation of Indian Industry

• Indonesia• 2006 Indonesian Best Brand Award by SWA

magazine (leading business publication) • 2006 Golden Indonesian Best Brand Award

• Philippines• #1 Mobile Phone Brand Award by GfK Asia

Clear APAC brand leadership

9 © 2006 Nokia

%

Base: APAC (ex Japan, Korea) Main User & Hot PotentialsSource: Nokia Brand Tracking Study

71

4 6 2

72

29

4

72

28 4

73

27 5

76

2 5 6

79

3 3 5

Q4 '03 Q2 '04 Q4 '04 Q2 '05 Q4'05 Q2'06

Competitive APAC brand preference

10 © 2006 Nokia

2004End 2004• 2 National

Distributors• 120 Regional

Distributors• 570 Branded

Retail Outlets• 40,000 Retail

Outlets

Nokia

NationalDistributors

RegionalDistributor

Consumers

Retailers NPD

End 2006• 2 National Distributors• 123 Regional

Distributors• 353 Micro Distributors• 800+ Branded Retail

Outlets• 78,000+ Retail Outlets

2006Nokia

NationalDistributors

RegionalDistributor

MicroDistributor

Consumers

Retailers NPD

Leadership in distribution – India

11 © 2006 Nokia

2,400

2 National & 123 RDS

78,624

600200300650Sales Reps

21080100163No. of Distributors

19,0529,29613,62032,298Outlets (approximate)

Source: Outlets - Extrapolation from GfK research (August ‘06)

Other data – Nokia market intelligence

Penetrating the India market with branded retail

12 © 2006 Nokia

End 2006

• 85% Independent Distribution

• 27 National Distributors

• 1000+ Branded Retail Outlets

• 50,000 Retail Outlets

• Widest distribution footprint across SEAZ

• Distributor KPIs aligned to driving coverage and improving service to retailers

• Cover 45% of outlets with Field Force across SEAZ

2006Nokia

NationalDistributorsOperator

Wholesalers

Consumers

Retailers Nokia Branded Retail

Leadership in distribution – SEAZ

13 © 2006 Nokia

Processes

Competencies

Sales Tools

Channel StructureEfficient & Disciplined, best distribution coverage

Assist+Influence retail, and TCO that delivers competitive advantage

Field ForceTrained & Effective Field Force to drive demand creation

Customer+Strategic & Execution Focused Account Management

Capabilities

Shaping channel, distribution & retail

14 © 2006 Nokia

• Market making & category creation in small towns

• Nokia VAN Operations –special purpose “Showroom on Wheels”van with a consistent brand experience and full range of products including live demonstration

• Half a million contacts established

• 1800+ branded outlets across APAC

• Over 800 stores with new look by end-2006

The visual & purchase experience drives sales

15 © 2006 Nokia

• Arming retail partners with expertise• Target over 400,000 individual training sessions by end 2006 • 14 training vendors qualified and engaged in Academy delivery

• Strengthening our on-the-ground presence

• 75% of outlets across APAC are covered by Field Force

The visual & purchase experience drives sales

16 © 2006 Nokia

Summary I

A high growth region

Diverse markets

Retailer & distributor-driven environment

Brand-conscious Asian consumers

The APAC Environment

17 © 2006 Nokia

Summary II

First-mover advantage in the

emerging markets

Strength of the Nokia brand

Breadth of product portfolio (low end to high tech/premium)

Close relationships with operators, retailers and distributors

Leadership in distribution, retail and field force

Nokia’sCompetitiveAdvantages

18 © 2006 Nokia Nokia World.ppt / 2006-09-07 / Initials