nokia x x

Conference Call

SecondQuarter 2002 Financial Results

Jorma Ollila

Chairman and CEO

Olli-Pekka Kallasvuo

Executive Vice President and CFO

Ulla James

Vice President, Investor Relations

July 18, 2002

15.00 Helsinki time / 08.00 New York time

During this call, we will be making various forward-looking

statements regarding the future business and financial

performance of Nokia and the mobile communications industry.

These statements are predictions that involve both risks and

uncertainties, and actual results may vary materially. We refer you

to pages 10 to 17 of Nokia's Form 20-F, to our previous

announcements and to Nokia's press release issued today regarding

some important risk factors you should consider in evaluating this

information.

10,000

9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000

0

(Millions of Euro)

Strong Profitability for Nokia

Nokia Sales & Gross Margin Development

50.0%

45.0%

40.0%

35.0%

Net Sales

30.0%

Gross Margin

25.0%

2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 3Q 01 4Q 01 1Q 02 2Q 02

Nokia - Key Figures

2Q 2002 PRO FORMA*

EUR (million)

Net sales 6 935 7 346 -6 6 935 7 346 -6

Nokia Mobile Phones 5 398 5 349 1 5 398 5 349 1
Nokia Networks 1 474 1 896 -22 1 474 1 896 -22
Nokia Ventures Organization 106 134 -21 106 134 -21

Operating Margins 18.2 15.5 17.6 11.7

Nokia Mobile Phones 21.7 17.9 21.3 16.9
Nokia Networks 11.6 15.8 10.9 12.7
Nokia Ventures Organization -59.4 -68.7 -65.1 -190.3

Net profit 905 830 9 862 589 46
EPS, EUR

Diluted 0.19 0.17 12 0.18 0.12 50

Operating Cash Flow 1 410 790 73

Q2-2002 Sales: 50% from Europe/Africa, 26% from APAC, and 24% Americas

2Q/2002 2Q/2001 Change (%) 2Q/2002 2Q/2001 Change (%)

REPORTED

Tools in Place for Growth in Our Industry

Service Environment Becoming a Reality

• GPRS

• MMS

• XHTML

• JAVA

• Color Displays

Unprecedented Industry Cooperation

• Open Mobile Alliance (OMA)

• Open standards

• Interoperability

• Fast mass market adoption