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1 2006 Nokia Nokia World.ppt / 2006-09-07 / Initials

Company Confidential

Nokia in China

Capital Market Days

Colin GilesSenior Vice PresidentCMO, Nokia China

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2 2006 Nokia Nokia World.ppt / 2006-09-07 / Initials

Company Confidential

Strong Growth Continuing in China

0

10 0

20 0

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

MeDceMkVume(m)

0 %

10 %

20 %

30 %

40 %

MeDceP

ao%

Source : Nokia estimates

Market Volume Subscription Penetration

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3 2006 Nokia

Confident & optimistic

Strong national pride

Busy & full life but embrace

fun & leisure

Growing demand for new

experiences & stimulation

Informed consumers Emerging middle-class

Internet & gadget-savvy youth

Quality first Fashion & design key choice criteria

Rural Chinese demand telecom

service

Chinese Consumers

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4 2006 Nokia

Seasonality consistent

Market moving to smaller cities;

fragmenting retail in these markets

Large retail chains consolidating

in the larger cities

Operator bundles taking a largershare of the market; China Mobile Super

Low End a strong contributor to growth

Convergence story is beginning

Current Market Trends

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5 2006 Nokia

33.9%443MMobile

Phones

0.6%8MDigital

Cameras

8%100MMP3

6.8%88MEmail

9.5%123MInternet

Penetration

(%)

USERS

Converging to Mobile

Source: CNNIC, July06 (Internet); IMI 05-06 (MP3); IResearch 06 (Email),CMMS 06 (Digital Camera); MII Oct06 (Mobile Phones)

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Company Confidential

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7 2006 Nokia

Established 21 years ago

Over 7200 employees

External Sales force of 6000+

6 Research & Development Units

Product Creation

Networks Technology

Nokia Research Center

4 Manufacturing Units

Mobile Phone Manufacturing in Beijing

and Dongguan

Networks in Beijing and Suzhou

Nokias presence in China

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8 2006 Nokia

Sales of 3.95 billion

EUR in Q1 Q3/06

Year on year sales growth of

over 45%

Nokia exports of over

2.8 BEUR in 2005

13 Quarters of consecutive

market share growth

(Mainland) 36.6 million units sold in

Q1 Q3/06

Nokia in China

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9 2006 Nokia

Established a strong sales &

marketing platform

Do not under-estimate

distribution

Presence at Retail Chinese Vendors couldnt follow

through

Quality

Sustainable Investments

R&D

Strong Brand Presence

Nokia SuccessStory

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10 2006 Nokia Nokia World.ppt / 2006-09-07 / Initials

Company Confidential

Mobile Phone Brand Preference

0

20

40

60

Q4'05 Q1'06 Q2'06 Q3'06

Nokia

Motorola

Samsung

SonyEricsson

Any domesticBrand

DK/NS

Source : Nokia estimates

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11 2006 Nokia

Maintain our leadership through Scale

Quality

Distribution/Coverage

Brand

Execution

Enhancing our relationships with National & Provincial Distributors

National & Provincial Retailers Operators

Preparing for 3G

Expanding to newexperience-led domains

Imaging

Music

E-mail

Mobile Internet

Nokia Strategy in China

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12 2006 Nokia Nokia World.ppt / 2006-09-07 / Initials

Company Confidential

3G opens up the market to competition andnew services

Wheres the subscriber ceiling?

Imaging devices are now well accepted

After SMS Is music the next driver for value

added services growth?

Can mobile phones bring Internet accessto the masses?

Enterprise potential is huge

Market Potential

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Company Confidential

Question

Time