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About Nokia Mobile Phones

Nokia in brief

Nokia is the world leader in mobility, driving the transformation and growth of the converging Internet and communications industries. They make a wide range of mobile devices with services and software that enable people to experience music, navigation, video, television, imaging, games, business mobility and more. Developing and growing their offering of consumer Internet services, as well as their enterprise solutions and software, is a key area of focus. Nokia also provide equipment, solutions and services for communications networks through Nokia Siemens Networks.

2008 facts and figures
-  Head office in Finland; R&D, production, sales, marketing activities around the world
-  World’s #1 manufacturer of mobile devices, with estimated 38% share of global device market in 2007
-  Mobile device volumes 437 million units
-  Net sales EUR 51.1 billion
-  Operating profit EUR 8.0 billion
-  112 262 employees at year end (including Nokia Siemens Networks)
-  Strong R&D presence in 10 countries
-  R&D investment EUR 5.6 billion
-  30 415 employees in R&D (approximately 27% of workforce, including Nokia Siemens Networks)
-  Sales in more than 150 countries
-  Nokia devices available at approximately 350,000 points of sale
-  World’s 5th most valued brand ( Interbrand, 2007) #1 brand in Asia ( Synovate 2006 and 2007), and #1 brand in Europe ( European Brand Institute, September 2007).
-  World's number one supply chain ( AMR Research, 2007)

-  Devices is responsible for developing the best device portfolio for the marketplace, including sourcing of components
-  Services & Software reflects our strategic emphasis on developing and growing our offering of consumer Internet services and enterprise solutions and software
-  Markets is responsible for management of our supply chains, sales channels, and brand & marketing activities
-  The Corporate Development Office focuses on our strategy and future growth, and provides operational support for integration across all the units
On April 1, 2007, Nokia’s Networks business group was combined with Siemens’ carrier-related operations for fixed and mobile networks to form Nokia Siemens Networks, jointly owned by Nokia and Siemens and consolidated by Nokia.

Nokia

The Board decides on matters that, in relation to the Group's activities, are significant in nature. Such matters include confirmation of the strategic guidelines, approval of the periodic plans and decisions on major investments and divestments. The Board appoints the CEO, who also acts as President, the Chairman and the members of Nokia's Group Executive Board. The Board also confirms the remuneration of the CEO.

The roles and responsibilities of the Board and its committees are defined in the Corporate Governance Guidelines and the committee charters. The Board's committees consist of the Audit Committee, the Personnel Committee and the Corporate Governance and Nomination Committee. The Board regularly reviews these guidelines and charters in order to ensure that they appropriately comply with what the Board believes to be best practices of corporate governance. The Board and each of its committees conducts annual performance self-evaluations.

Group Cheap Mobile Phones Executive Board

Nokia's articles of association provide for a Group Executive Board, which is responsible for managing the operations of Nokia. The Chairman and the members of the Group Executive Board are appointed by the Board of Directors. Only the Chairman of the Group Executive Board can be a member of both the Board of Directors and the Group Executive Board.

Annual General Meeting

The shareholders of Nokia use their decision-making power in Nokia's general meetings. The Annual General Meeting is usually held in each March, April or May.

Auditor

The independent auditor is elected annually by Nokia’s shareholders at the Annual General Meeting. PricewaterhouseCoopers Oy was re-elected as Nokia’s independent auditor for the fiscal year 2007 at the Annual General Meeting on May 3, 2007.

Corporate Governance Practices

Nokia follows rules and recommendations of the Helsinki, New York, Stockholm and Frankfurt stock exchanges, where applicable.

Nokia's corporate governance practices comply with the Corporate Governance Recommendation for Listed Companies approved by the Helsinki Stock Exchange in December 2003, effective as of July 1, 2004.

Nokia has an internal audit function that acts as an independent appraisal function by examining and evaluating the adequacy and effectiveness of the company’s system of internal control. Internal audit resides administratively within the CFO’s organization and reports to the Audit Committee of the Board of Directors. The head of internal audit function has at all times direct access to the Audit Committee, without involvement of the management.

Under the New York Stock Exchange's corporate governance listing standards, listed foreign private issuers, like Nokia, must disclose any significant ways in which their corporate governance practices differ from those followed by US domestic companies under the NYSE listing standards. There are no significant differences in the corporate governance practices followed by Nokia as compared to those followed by US domestic companies under the NYSE listing standards, except that Nokia follows the requirements of Finnish law with respect to the approval of equity compensation plans. Under Finnish law, stock option plans require shareholder approval at the time of their launch. All other plans that include the delivery of company stock in the form of newly issued shares or treasury shares require shareholder approval at the time of the delivery of the shares or, if shareholder approval is granted through an authorization to the Board of Directors, no more than a maximum of five years earlier. The NYSE listing standards require that equity compensation plans be approved by a company's shareholders.