1 © 2006 Nokia

Nokia in Middle East & AfricaTimo ToikkanenSenior Vice PresidentCustomer and Market OperationsMiddle East & Africa

One region. Infinite opportunities

2 © 2006 Nokia

3 © 2006 Nokia

New region emerges

North America Europe

China

Latin America

MEA

1.2 billion people 19% of world’s population1/3 of world’s nations69 markets

MEA APAC

4 © 2006 Nokia

Vast and growing

•Geographically challenging

•Culturally diverse

•Minimum 20% of next billion subscribers expected to come from MEA

5 © 2006 Nokia

Latest results from segmentation studies reveals high number of “Technology Leader” consumers across the MEA region

HIGH INVOLVEMENT

LOW INVOLVEMENT

RATI

ON

AL

ASPIRATION

AL

16% of total globalmobile device volume

Important part of global device business

MEA

REST

Source: Nokia Estimates, 2005

6 © 2006 Nokia

Region with many faces

African consumers

Arab consumersEmerging Markets

Developed markets

7 © 2006 Nokia

Understanding the diversity of MEA

Source: Nokia estimates, 1H07/1H06

MG 1: Operator or hybrid markets .

MG 2: Developed independentdistribution

MG 3: Developing independentdistribution (Large)

MG 4: Developing independentdistribution (Small)

MG 5: Emerging independentdistribution

YoY Growth+10% YoY Growth+12%

YoY Growth+21%

YoY Growth+33% YoY Growth+27%

8 © 2006 Nokia

Growth ahead – estimated device market in MEA

• Mobile often the only choice of telephony

• Low penetration as starting point

• Fast subscriber and replacement growth expected

• Development speeded up by socio-economical benefits of mobility

Source: Nokia estimates

0

100

200

2003 2004 2005 2006E 2007E

Mar

ket V

olum

e (m

)

0%

10%

20%

30%

>15%

Market volume Penetration

9 © 2006 Nokia

Nokia - MEA market leader

10 © 2006 Nokia Source: GFK

Top selling models in MEA area – September 20061. Nokia 11002. Nokia 16003. Nokia 11104. Motorola C1185. Motorola V3606. Nokia 11127. Nokia N708. Nokia 60309. Motorola C11310. Nokia 6020

11 © 2006 Nokia

Distribution revolution

’05 and before

‘06

’07 and after

Trading Transformed to Domestic Business

Premium Standard

Nokia Focused Domestic Distribution

Nokia Quarterly Shipment Development 2005-2006

Mill

ion

s o

f Un

its

Ship

ped

Domestic Export

c

B

A

12 © 2006 Nokia

End 2005

Foundationfor localdistribution

End 2006

Detailed databaseof 30.000+ outlets

Mobile IT-solutionfor sell-out visibility

Nationwide team in six key markets to manage retail

End 2007

Detailed databaseof 70.000+ outlets

Nationwide team in 19 key markets to manage retail

Visibility to andcontrol over 80%of MEA mobiledevice sell-out

Efficient distributionand high-touchretail managementis the competitiveedge for Nokia

Expanding in-market channel management

13 © 2006 Nokia

• Shorter channel

• Lower inventories

• Improved control

• Better channel visibility

• Understanding of sell-out

• Ability to push sales

Benefits of local distribution

’05 and before‘06

’07 and after

Trading Transformed to Domestic Business

Premium Standard

Nokia Focused Domestic Distribution

Nokia Quarterly Shipment Development 2005-2006

Mill

ions

of U

nits

Shi

pped

Domestic Export

c

B

A

14 © 2006 Nokia

Nokia Brand -Preferred

15 © 2006 Nokia

Nokia Talks to Local Consumers

16 © 2006 Nokia

Nokia – The most loved brand of MEA

Base:All current users & hot potentials1 4 1

73

40 2

72

51

11

1

73

3

12 115

0

20

40

60

80

100

Nokia Motorola Siemens Samsung Sony Ericsson LG

Q4'05

Q1'06

Q2'06

Nokia maintains its clear overall preference lead

6

Sour

ce: G

FK

17 © 2006 Nokia

At the heart of Nokia MEA’s strategy

‘Make a Connection’Program

Pakistan Earthquake

Relief Mission

Nokia LEAP

FonetographyCharity Auctions

Plan

**Nokia gives youth in Africa a voice ****Nokia gives back to the community**

Community Involvement – Making a difference

18 © 2006 Nokia

Summary

•Market growth in MEA is to continue

•All Nokia business groups including Multimedia and Enterprise Solutions are well established

•MEA is large and diverse and local market understanding and execution will be crucial

•Nokia is volume & value market share leader in every one of the 69 markets in MEA

•Nokia brand leadership is clear

•Further competitive advantage will result from best in class distribution and retail management system

Thank You