Telecom Lead Europe: Nokia Siemens Networks has posted 8
percent dip in second quarter sales to EUR 3.34 billion from EUR 3.64 billion
in the same quarter previous year.

In Asia Pacific, Nokia Siemens grew business by 6 percent
to EUR 1.028 billion from EUR 973 million.

In all other regions, Nokia Siemens showed negative
growth in sales.

(Please see the chart)

Operating profit in Q2 2012 was EUR -227 million against
EUR -111 million in Q2 2011.

Profit margin declined by 34 percent to -6.8 percent from
3 percent.

The year-on-year decrease in Nokia Siemens Networks’ net
sales in the second quarter 2012 was primarily due to Nokia Siemens Networks’
strategy to focus on mobile broadband, customer experience management and
services.  Business areas not consistent with the new strategy are in
the process of being divested or managed for value.  On a
year-on-year basis, Nokia Siemens Networks experienced a decline in sales of
infrastructure equipment as well as a slower operator investment environment in
certain markets, including Europe. This was partially offset by a slight
increase in sales of services.

The sequential increase in Nokia Siemens Networks’ net
sales in the second quarter 2012 was primarily due to industry seasonality,
partially offset by Nokia Siemens Networks’ strategy to focus on mobile
broadband, customer experience management and services.  On a
sequential basis, Nokia Siemens Networks experienced similar rates of growth in
infrastructure equipment and services.

Nokia Siemens Networks continues to target to reduce its
non-IFRS annualized operating expenses and production overheads by EUR 1
billion by the end of 2013, compared to the end of 2011. While these savings
are expected to come largely from organizational streamlining, the company will
also target areas such as real estate, information technology, product and
service procurement costs, overall general and administrative expenses, and a
significant reduction of suppliers in order to further lower costs and improve
quality.

The following table sets forth Nokia Siemens Networks net
sales for the periods indicated, as well as the year-on-year and sequential
growth rates, by geographic area.

NOKIA SIEMENS NETWORKS  NET SALES BY GEOGRAPHIC AREA
EUR millions	Q2/2012	Q2/2011	YoY Change	Q1/2012	QoQ Change
Europe	990	1 122	-12%	930	6%
Middle East & Africa	304	389	-22%	270	13%
Greater China	340	403	-16%	209	63%
Asia-Pacific	1 028	973	6%	877	17%
North America	300	311	-4%	283	6%
Latin America	381	444	-14%	378	1%
Total	3 343	3 642	-8%	2 947	13%

 

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