Nokia Conference Call Third Quarter 2005 Financial Results

Jorma Ollila Chairman and CEO Rick Simonson Executive Vice President and CFO

Ulla James Vice President, Investor Relations

October 20, 2005 15.00 Helsinki time / 08.00 New York time

1 © 2005 Nokia 3Q05cc-v0.1.ppt / 2005-10-15 It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding: A) the timing of product and solution deliveries; B) our ability to develop, implement and commercialize new products, solutions and technologies; C) expectations regarding market growth, developments and structural changes; (D) expectations regarding our mobile device volume growth, market share and prices, E) expectations and targets for our results of operations; F) the outcome of pending and threatened litigation; and G) statements preceded by "believe," expect," "anticipate," "foresee," "target," "designed" or similar expressions are forward-looking statements. Because these statements involve risks and uncertainties, actual results may differ materially from the results that we currently expect. Factors that could cause these differences include, but are not limited to: 1) the extent of the growth of the mobile communications industry and the new market segments in which we have recently invested; 2) price erosion; 3) timing and success of the introduction and roll-out of new products and solutions; 4) competitiveness of our product portfolio; 5) our failure to identify key market trends and to respond timely and successfully to the needs of our customers; 6) the impact of changes in technology and the success of our product and solution development; 7) the intensity of competition in the mobility industry and changes in the competitive landscape; 8) our ability to control the variety of factors affecting our ability to reach our targets and give accurate forecasts; 9) the availability of new products and services by network operators and other market participants; 10) general economic conditions globally and in our most important markets; 11) our success in maintaining efficient manufacturing and logistics as well as the high quality of our products and solutions; 12) inventory management risks resulting from shifts in market demand; 13) our ability to source quality components without interruption and at acceptable prices; 14) our success in collaboration arrangements relating to technologies, software or new products and solutions; 15) the success, financial condition, and performance of our collaboration partners, suppliers and customers; 16) any disruption to information technology systems and networks that our operations rely on; 17) our ability to have access to the complex technology involving patents and other intellectual property rights included in our products and solutions at commercially acceptable terms and without infringing any protected intellectual property rights; 18) our ability to recruit, retain and develop appropriately skilled employees; 19) developments under large, multi-year contracts or in relation to major customers; 20) exchange rate fluctuations, including, in particular, fluctuations between the euro, which is our reporting currency, and the US dollar, the UK pound sterling and the Japanese yen; 21) the management of our customer financing exposure; and 22) the impact of changes in government policies, laws or regulations; as well as 23) the risk factors specified on pages 12–22 of the company’s Form 20-F for the year ended December 31, 2004 under "Item 3.D Risk Factors."

• A record 66.6 million mobile devices shipped (+9% QoQ, +29% YoY) • 1 billionth Nokia mobile phone shipped • Nokia device market share 33% • Net Sales EUR 8.4 billion (+18% YoY) • Diluted EPS grew 33% YoY - highest growth in 5 years • Operating cash flow of EUR 1.2 billion (up 140% QoQ) • Share buyback of 99.6 million shares

Nokia 6630 Music Edition and Nokia 8800

Volumes by Region Volumes by Technology 200 200 TDMA 1M (-26% QoQ) North America 36M US ESMR 3M (-16% QoQ) (+6% QoQ, +15% YoY) 175 175 PDC 2M (-33% QoQ) Latin America 24M CDMA 33M (+12% QoQ) 150 (-7% QoQ, +37% YoY) 150 WCDMA 12M (+41% QoQ) China 25M 125 125 (+6% QoQ, +22% YoY) 100 APAC 36M 100 (+11% QoQ, +21% YoY) 75 75 GSM 147M (+10% QoQ)

50 50 EMEA 77M 25 (+16% QoQ, +30% YoY) 25

0 0 3Q 2005 3Q 2005 •Mobile device market volume grew by +25% YoY from 159 M units in 3Q04 and by +9% QoQ from 183 M in 2Q05 to 199 M units in 3Q05 •Number of global subscriptions exceeded 2.0 billion (cellular penetration 31%) 4 © 2005 Nokia Nokia Mobile Devices in 3Q05 million units 70 Nokia Device Market Share

60 #1 in all of EMEA #1 in all of APAC 50 #1 in China 40 #1 in India 30 #1 in Russia

20 #1 in Middle East and Africa #1 in South East Asia Pacific 10 #1 in WCDMA 0 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05

EMEA APAC China Area Latin America North America

Mobile Device Revenue mix 3Q05

Enterprise Solutions 3% Nokia 1100 (3% 2Q05)

Multimedia 21% Nokia 6680 (21% 2Q05) Nokia 3120

Nokia 6230i TOP 5 revenue generators

Mobile Device Revenue mix Nokia 2600 3Q05 2Q05 3Q04 MP 76% 76% 80% M 21% 21% 17% ES 3% 3% 3% 100% 100% 100% Mobile Phones 76% (76% 2Q05) 3Q05 2Q05 QoQ 3Q04 YoY

3Q05 3Q04 YoY 2Q05 QoQ Sales (MEUR) 1 555 1 524 2% 1 620 -4% OM % 10.1% 12.9% 12.9%

Geographic Distribution of Sales 3Q05

EMEA China APAC North America Latin America

Mobile Multi- Enterprise Networks Nokia Nokia YoY Nokia QoQ EUR (million) Phones media Solutions 3Q05 3Q04 (* Change 2Q05 Change

Net sales 5 203 1 447 203 1 555 8 403 7104 18% 8059 4% YoY growth 15% 55% 16% 2% 18% 25% Gross profit 1 590 582 103 552 2 833 2586 10% 2887 -2% Gross margin, % 30.6% 40.2% 50.7% 35.5% 33.7% 36.4% 35.8% R&D -292 -189 -76 -276 -885 -891 -1% -971 -9% % of net sales 5.6% 13.1% 37.4% 17.7% 10.5% 12.5% 12.0% S&M -375 -145 -46 -121 -692 -581 19% -825 -16% % of net sales 7.2% 10.0% 22.7% 7.8% 8.2% 8.2% 10.2% AG&O incl. 1-time -43 -3 -18 2 -105 -145 -28% -87 21% % of net sales 0.8% 0.2% 8.9% -0.1% 1.2% 2.0% 1.1% Operating profit 880 245 -37 157 1 149 969 19% 1004 14% Operating margin, % 16.9% 16.9% -18.2% 10.1% 13.7% 13.6% 12.5% Financial income and expenses 63 78 -19% 103 -39% Profit before tax and minority interests 1 218 1 041 17% 1 108 10% Net profit 881 685 29% 799 10% EPS, Basic and Diluted (EUR) 0.20 0.15 33% 0.18 11%

*) NOTE: 2004 Financial Statements retrospectively adjusted for IFRS2 and IAS39R

Special items – 3Q05 • Divestiture of TETRA business: • Networks + EUR 42 million (Other Income) • Multimedia + EUR 19 million (Other Income) • Real estate sales in Group Common: + EUR 8 million (Other Income) • Sale of minority investment in Networks: + EUR 18 million (Other Income) • 3Q 2005 Total impact from special items: + EUR 87 million or EPS 0.015

Special items – 3Q04 • R&D impairment in Networks: - EUR 38 million (R&D expenditure) • Insurance premium in Group Common: +EUR 20 million (Other Income) • 3Q 2004 EPS impact from special items: negligible

• 3Q05 EUR/USD average rate for P&L: 1.2142 • 4Q05 EUR/USD Plan rate: 1.2174

EUR (million) 3Q 2005 3Q 2004 YoY 2Q 2005 QoQ

Inventories 1,730 1,261 37% 1,404 23%

Accounts Receivable 4,687 4,111 14% 4,824 -3%

Accounts Payable 3,570 2,855 25% 3,061 17%

Operating Cash Flow 1,223 1,170 5% 510 140%

Capital Expenditure 156 150 4% 156 0% Depreciation 172 205 -16% 171 1%

Cash and Other liquid assets 10,996 11,787 -7% 11,172 -2%

Gearing (Net-Debt ratio) -82% -81% -80%

Distributions 1,300 526 2,047 Dividends 1,498 Buybacks 1,300 526 147% 549 137%

• 2005 market outlook • Mobile Device market: about 780 million units (+21% YoY) • Infrastructure market: slight to moderate growth in euro terms

• 4Q05 outlook • Mobile device market: usual seasonality expected, up from 199 million units in 3Q05 • Nokia device volumes: market share expected to go up QoQ and YoY • Nokia device ASP: expected to decline QoQ • Nokia Networks sales: expected to decline YoY

Nokia 6230i, Nokia 6680, N70, Nokia 6101 and Nokia 6020

Nokia 2652

Nokia 3250

Nokia 7360 Nokia 7370 Nokia 7380 Nokia 6111 Nokia 6270 Nokia 6280