1. Nokia Views on Impact of Mobility, ICT and Sustainability Ilkka Lakaniemi Director, Business Environment Strategy © 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials Company Confidential 1

2. © 2009 Nokia 2 The world as we know it is changing Financial crisis aftermath Shift of economic power balance Global topics: health, security and education Climate change accelerates Economic growth leveling Increasing government intervention Scarce financial resources GDP and inequality of wealth distribution keeps growing Rising power of BRIC+ countries Environmental issues have increasing impact on societies and political systems ICT seen as a solution to climate change challenges booming in emerging markets hand-in-hand with internet

3. Towards the 5 Billion Milestone Mobile phone subscriptions globally, millions Source: Nokia 0 -92-93-94-95-96-97-98-99-00-02 -03 -04-05-09 200 400 600 800 1 000 1 200 1 400 1 600 1 800 2 000 2 200 2 400 2 600 2 800 3 000 -07 4 billion in 2009 4 billion in 2009 Global penetration >50% -15e 5 billion in 2015 5 billion in 2015 3 billion in 2007 3 billion in 2007

4. © 2009 Nokia, Nokia Siemens Networks 4 2009 saw the number of mobile broadband customers overtake fixed-line broadband users globally Graph source: National Regulators, ITU, Nokia Siemens Networks May 2009, ¹Strategy Analytics 0 1000 2000 3000 4000 5000 6000 -94-95-96-97-98-99-00-02-03-04-05-06-07-08-09-10-11-12-13 subscriptions globally, millions MobilePSTNFixed Broadband Mobile Broadband 770 M accessing mobile internet with mobile phone At the end of 2008, there were 400 million users of mobile internet services worldwide (access through mobile phone) - 47% of which from APAC, 23% Western Europe and 17% in North America. By 2013 the total number of users of mobile internet is forecast to rise to 770 million. That is 21% of mobile user penetration¹.

5. GDP impact of internet and broadband boost GDP more than 1% in emerging economies © 2008 Nokia 5 Source: Qiang, 2009, World Bank 0.5 1.0 1.5 Percentage points 0.43 0.72 0.60 0.81 0.77 1.12 1.21 1.38 Fixed Mobile Internet Broadband High-income economies Low- and middle-income economies “Productivity isn’t everything, but in the long run it is almost everything. A country’s ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker.” Paul Krugman, The Age of Diminishing Expectations (1994)

6. Market expansion towards 5Bn users To capture new business among consumers with USD1~2/day, Nokia needs to address 3 key challenges Targeted consumers earn USD 1-2 / day Challenge 3: Distribution in rural areas Challenge 1: Affordability issue with high TCO 1$/day 2$/day 4$/day >40$/day 4-40$/day Voice, Internet/IP Voice No connection 1 32 Challenge 2: Cash barrier

7. TCO < USD 5 enables the majority of the lower- income consumers to use mobile communications US dollars 0 5 10 15 20 25 Average 10.88 US dollars Honduras India Bangladesh Pakistan Uzbekistan Indonesia Sri Lanka Madagascar China Guinea Mongolia Malaysia Paraguay Thailand Sudan Cambodia Jordan Mauritius Egypt Guatemala Vietnam Ethiopia Ghana Kyrgyzstan Iran Tajikistan Philippines Tunisia Algeria Haiti Botswana Bolivia Senegal Syria Kenya Moldova El Salvador Georgia Ecuador Uruguay Uganda Armenia Mexico Colombia Namibia Swaziland South Africa Lesotho Dom. Rep. Côte d’Ivoire Argentina Malawi Zambia Chile Cameroon Nigeria Tanzania Kazakhstan Chad Angola Congo Guyana Morocco Burkina Faso Turkey Azerbaijan Gabon Nicaragua Peru Albania Lebanon Brazil Today twelve countries reach the monthly TCO target level. In 2007 there was only four TCO high performers.

8. 8 There are big disparities between the regions in terms of the monthly cost APAC EurasiaLatin America MEA Source: Nokia, Nokia Siemens Networks, August 2009 Average 82% 14% 5% 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 USD $46.54 $17.36 $47.78 $62.79 $47.74 TaxesServicesHandset Compared with other regions, APAC is the top mobile data TCO performer at an average of USD 17.36 monthly. Latin America emerges as the most expensive data TCO region by face value. © 2008 Nokia

9. TCO < USD 30 would enable an emerging market middle- income consumers to use mobile data © 2008 Nokia 9 Average 46.54 US dollars Bangladesh India Pakistan Madagascar Thailand Mongolia China Uzbekistan Honduras Guinea Mauritius Cambodia Tajikistan Kyrgyzstan Iran Paraguay Vietnam Ghana Sudan Indonesia Sri Lanka Ethiopia Egypt Kenya Jordan Malaysia Moldova Philippines Guatemala Uganda Bolivia Armenia Tunisia Algeria Georgia Namibia Zambia Botswana Senegal Guyana Tanzania Azerbaijan Haiti Nigeria Dom. Rep El Salvador Kazakhstan Ecuador Syria Congo Lesotho Uruguay Argentina Chad South Africa Côte d’Ivoire Chile Swaziland Colombia Mexico Angola Cameroon Nicaragua Turkey Lebanon Morocco Albania Venezuela Peru Bra zil USD 0 20 40 60 80 100 Wallet share (TCO / GDP per capita) ≤ 5%5-10%>10-20%> 20% Bangladesh and India have the lowest absolute mobile data TCO, less then USD 10 / month. 80% of the top 10 market in the previous Nokia TCO research (voice + SMS) are also among the top 10 best mobile data TCO performers. Source: Nokia, Nokia Siemens Networks, August 2009

10. © 2008 Nokia Success through affordability, September 2008 10 The virtuous circle of affordable mobile data Increased usage Increased profits Low prices Higher utilization of networks Broad socio- economic benefits Easy market entry Decreased risk of investment Lower tax burden Transparent regulation + +

11. Connectivity Scorecard 2010 1 : Innovation-driven countries – Sweden is the new leader Sweden has passed the United States US strong performer, but behind the very best in consumer infrastructure ICT leadership of Nordic countries: Sweden (1), Norway (3), Denmark (4), Finland (6) Korea, Japan excel in consumer infrastructure Poor showing of southern and eastern European countries (19-25) Average score = 6.12 RankCountryScore 1Sweden [2]7.95 2United States [1]7.77 3Norway [5]7.74 4Denmark [3]7.54 5Netherlands [4]7.52 6Finland [11]7.26 7Australia [8]7.04 8United Kingdom [6]7.03 9Canada [7]7.02 10Japan [10]6.73 11Singapore [9]6.68 12Ireland [12]6.37 13Korea [18]6.33 RankCountryScore 14Hong Kong SAR [14]6.10 15Belgium [17]6.08 16New Zealand [16]6.07 17Germany [13]5.77 18France [15]5.65 19Czech Republic [20]5.03 20Spain [21]4.79 21Portugal [22]4.45 22Italy [19]4.35 23Hungary [23]4.31 24Poland [25]4.06 25Greece [24]3.44 1 2009 ranking in parentheses

12. Connectivity Scorecard 2010 1 : Resource and efficiency-driven countries – Malaysia tops yet again Malaysia top scorer for 3 rd year in a row, very consistent performance Best Latin American performers Chile, Argentina and Brazil retain/improve position South Africa’s ranks 2nd, helped by strong corporate spending on IT hardware, software and services China (17) and India (21) continue to be relatively weak performers Average score = 3.89 RankCountryScore 1Malaysia [1]7.14 2South Africa[4]6.18 3Chile [3]6.06 4Argentina [7]5.90 5Russia [6]5.82 6Brazil [8]5.32 7Turkey [2]5.09 8Mexico [5]5.00 9Colombia [9]4.76 10Ukraine [13]4.67 11Botswana [10]4.30 12Thailand [11]4.11 13Tunisia [14]3.87 RankCountryScore 14Iran [12]3.59 15Vietnam [19]3.42 16Sri Lanka [18]3.18 17China [15]3.14 18Egypt [17]2.97 19Philippines [16]2.92 20Indonesia [21]2.13 21India [20]1.82 22Kenya [22]1.80 23Nigeria [25]1.78 24Bangladesh[23]1.69 25Pakistan [24]1.53 1 2009 ranking in parentheses

13. Sweden – new top scorer in this year’s index Outstanding performance on Connectivity Scorecard 2010 Scores consistently well across the board, although it does not finish 1st on any sub-category Narrowed gap with Asian countries (Japan, Korea) in terms of developing mass-market, next-generation, broadband infrastructure Best current mix of attributes to migrate up the “ICT value chain” Sweden 7.95 Connectivity Score

14. United States – still going strong, but no longer at the top United States 7.77 Connectivity Score One of the strongest performers on Connectivity Scorecard, but less consistent than Sweden, Denmark and the Netherlands Leader in business infrastructure Strong in consumer usage, but slightly below Nordic countries Room for improvement in consumer infrastructure, where the US falls a long way behind leading Korea US predominance in higher education and skills is slipping

15. High-ranking Sweden, Norway, Denmark and Finland confirm Nordic ICT leadership Sweden 7.95 Connectivity Score Norway 7.74 Connectivity Score Denmark 7.54 Connectivity Score Finland 7.26 Connectivity Score Sweden (1), Norway (3), Denmark (4) and Finland (6) all consistent performers Norway leads in both consumer and business usage and skills Denmark top scorer in government infrastructure, but less strong than Sweden in consumer infrastructure Finland climbs to 6 th place this year: Excels in workforce skills; strong investor in ICT and ICT-related R&D

16. UK 7.03 Connectivity Score UK – quite strong, but again held back by more moderate performance in consumer sector Slightly more moderate position than last year In same group as Australia, Canada and Finland Strong performance in business sub-categories High usage of new technologies by consumers, but weaker link in consumer infrastructure sector Slow in deployment/uptake of very high-speed broadband networks – behind Japan, Korea, Sweden, US, Belgium!

17. Malaysia – top-scoring emerging nation for the 3rd time around; very consistent performance Malaysia 7.14 Connectivity Score Performs consistently well across all sub- categories of the Scorecard Enormous economic progress has translated into good development of infrastructure and good ICT usage levels Can Malaysia transition to the next stage and use ICT to innovate? Can it become an “innovation economy”?

18. China and India still lackluster performers Both countries in roughly the same echelon of performance as last year China (17) well ahead of India (21), especially on measures of consumer infrastructure deployment (mobile penetration, broadband penetration) But China has long way to go before it reaches the levels of the top five group, especially in terms of overall business investment in ICT India lags behind in almost all aspects of Scorecard Improving infrastructure for consumers/businesses key priority! China 3.14 Connectivity Score India 1.82 Connectivity Score

19. Impacts of mobility The adoption of mobile technology has been one of the defining features of the last quarter century as many as 4.5 billion people around the globe now use mobile telephones Mobiles are changing the world & offering new opportunities - emerging markets are key in this dynamic Development of new markets, such as Africa, and future growth of 3G and 3G+, particularly in Asia In emerging markets business models and services are being developed that account for local constraints, such as regulatory obstacles, illiteracy and low income levels  Mobile & Internet convergence, opening doors for new applications and services in both OECD & emerging markets © 2010 Nokia 19 Growth effects of ICT

20. Mobility & diffusion The rate of diffusion of mobility is non-linear, Why? Some explanations: Patchy network coverage, high speed data not available around the world Differences in local regulatory, competition and pricing arrangements Cultural influences on communication preferences Trend: Toward greater convergence Adoption driven by LOCAL environments & constraints © 2010 Nokia 20

21. Key Impacts & dimensions of mobility Key Impacts M-Governance Take back & Recycling M-services & solutions Energy efficiency & CO2 Emission Med ical administration Med ical administration Wellness Education quality Educational reach & equality Educational reach & equality New innovative ways of learning Freedom of Speech Political Activism Trust & Legitimacy Growth &Productivity Employment Entrepreneurs hip & innovation Entrepreneurs hip & innovation Financial Services Gender issues Social Capital & networking Cultural norms Safety & Privacy Transparency Record Management Civic Engagement Electoral Oversight & Voter Registration Resource consumption Resource consumption Medical information Media, Publishing & Entertainment Market efficiency Market efficiency Work-Life balance Literacy Disease tracking & prevention Educational content delivery 21 © 2010 Nokia Economic & Finance Politics & Democracy Education Social &Cultural Sustainability Health Emergencies & disasters

22. Nokia Data Gathering projects © 2010 Nokia Corporate Social Investment 22 Ecuador 2008 improving access and quality of the health care The Philippines 2010 Following up crop production Indonesia 2010 [coming soon] Brazil: 2009 Fighting back dengue fever Liberia 2010 Building birth registration 93% cut in dengue fever cases Health Agriculture Census Emergency Services Other Finland 2010 [coming soon] Substantially shorter cycle for requested field information

23. Fighting back dengue fever in the Amazonas Challenge Thousands of registered dengue fever cases annually – disease with serious symptoms and consequences Pen and paper process to collect data was too slow for effective monitoring and rapid actions Project Collecting data from isolated areas in the heart of the Amazon jungle with help of mobile phone Educational actions to promote precaution in health Project size: 200 collectors, 3 campaigns (each for 3 months and with 4000 forms) Results 93% cut in dengue fever cases (from 3522 in 2008 to 245 in 2009) Improved agility, increased public safety © 2010 Nokia Corporate Social Investment 23 “We have series of programs dealing with endemic diseases and Nokia’s technology helps us to rapidly record symptoms of the surveyed population. The transmission of information after the interviews improves agility, increases public safety and avoids manual filling-in of forms”. Agnaldo Costa, State Health Secretary of Amazonas State

24. 24 © 2009 Nokia Thank you