Telecom lead Europe: Nokia
Siemens Networks has registered 7 percent decline increase in Q1 2012 sales at
EUR 2.9 billion compared with EUR 3.1 billion in Q1 2011.

The company posted operating loss of EUR 1 billion as
compared with EUR 142 million in Q1 2011.

In terms of geographic area, NSN net sales from the Europe
region stood at EUR 930 million in Q1 2012, against EUR 1 billion in Q1 2011.
QoQ wise NSN net sales decreased 27 percent from Europe.

In MEA, NSN’s net sales stood declined 12 percent at EUR 270
million, compared to EUR 307 million in Q1 2011.

NSN’s net sales have plunged 11 percent in Asia-pacific
region at EUR 877 million, against EUR 988 million in Q1 2011. In Latin America
its sales plunged 2 percent at EUR 378 million in Q1 2012, whilst in Greater
China it slumped 35 percent at EUR 209 million.

However, there is something for NSN to rejoice about in Q1
2012, as its sales in North America increased 67 percent at EUR 283 million
against EUR 169 million in n Q1 2011.

Nokia reported 26 percent decline in net sales at EUR 7.4
billion, which includes Nokia devices, Nokia Siemens and location business for
Q1 2012, against EUR 10.4 billion for Q1 2011.

Nokia Siemens Networks sales up 11 percent to EUR 14.04 billion
in 2011

Nokia Siemens Networks registered 11 percent increase in
2011 sales at EUR 14.04 billion in 2011 compared with EUR 12.66 billion in
2010.

The company said that due to the nature of the restructuring
program as well as prevailing uncertain macroeconomic conditions, the timing of
improvements in profitability is uncertain and therefore Nokia Siemens
Networks’ non-IFRS operating margin in 2012 is expected to be volatile.

Furthermore, 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.

 Nokia Siemens Networks completed the acquisition of
Motorola Solutions’ networks assets on April 30, 2011. Accordingly, the results
of Nokia Siemens Networks for the first quarter 2012 are not directly
comparable to its results for the first quarter 2011.

On November 23, 2011 Nokia Siemens Networks announced its
strategy to focus on mobile broadband and services and the launch of an
extensive global restructuring program.

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.

In the first quarter of 2012, Nokia Siemens Network
recognized restructuring charges and other associated items of EUR 772 million
related to this restructuring program. While the total extent of the
restructuring activities is still to be determined, the company anticipates
cumulative charges in Nokia Siemens Networks of around EUR 1 billion before the
end of 2012.

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