1. We strive each day to provide our customers with innovative human solutions that deliver exciting user experiences Company Confidential SAN DIEGO MECHANICS Mechanics Collaborative R&D (CoRD) Ron Chao and Mark Strawn V10 12-May-2010

2. We strive each day to provide our customers with innovative human solutions that deliver exciting user experiences Company Confidential SAN DIEGO MECHANICS Why There is a need to develop ways to work with suppliers in a collaborative work mode that will take advantages of both Nokia’s and Suppliers’ strength. Establish Clear Ownership, while inviting more collaboration Flexibility - VI suppliers do not have competence to design or manufacture some of our complex parts (Sushi design/B-cover) Improve Communication with 1st and 2nd source suppliers Take advantage of time zones Enables Nokia to more closely monitor quality throughout PD phase In PD phase, the quality often drops from B2 to B3. This can be due to process control issues at the supplier, as well as design changes after PD2. Ensures that the design team continues to grow their core competence Takes advantage of suppliers tooling and manufacturing knowledge Makes better use of Nokia resources We can move more resources into concepting to increase the maturity of the concept

3. We strive each day to provide our customers with innovative human solutions that deliver exciting user experiences Company Confidential SAN DIEGO MECHANICS Introduction Mechanics Collaborative R&D (CoRD) is a new way of working with our mechanics suppliers where we invite our manufacturing partners to closely collaborate in our PD implementation, while Nokia maintains responsibility for all the design aspects. San Diego mechanics team has been practicing this CoRD method in a limited scope with: Keymat suppliers Shield suppliers Antenna suppliers Mechanism suppliers Our goal is for the Nokia internal team to document the engineering design of the concept, in 2D and 3D, to the point where our suppliers can follow the instruction and complete the detailed design without changing the original concept. We believe we can extend this method to all mechanics elements, including major parts like the chassis cover assembly. Clearly, this method is different from previous JRD work mode. The main difference is that Nokia team assumes the entire responsibility for the design while closely collaborating with the mechanics suppliers to achieve high quality mechanics in the shortest time possible

4. We strive each day to provide our customers with innovative human solutions that deliver exciting user experiences Company Confidential SAN DIEGO MECHANICS Goals Improve PD execution effectiveness (reduce time from CS1 to PD3) Improve the quality of B1 and each subsequent build Maintaining head count while increasing the capacity Maintain design consistency Win together with suppliers by closer collaboration with mechanics suppliers Improve communication between Nokia and supplier using universal “engineering” language Clear Ownership – CoRD assumes all the design responsibilities at Nokia side, avoiding uncertainties and miscommunication seen previously from suppliers in the mJRD, eJRD and ODM work mode. Help suppliers to focus on their expertise areas (tooling, manufacturing) Improve the Mechanics Engineering competence and Communication skills of Nokia personnel More Nokia personnel focused on concepting development, while suppliers are focused on the manufacturing aspects. Avoid unnecessary design iterations Rapid design and tooling changes. Suppliers are very knowledgeable in design history. It helps the tooling modification.

5. We strive each day to provide our customers with innovative human solutions that deliver exciting user experiences Company Confidential SAN DIEGO MECHANICS Vision General Nokia Responsibilities Accurate engine architecture w/ spheres, requirements and deltas clearly documented ID fits keep-out, size target frozen with open items identified Space analysis (confidence on size) with no unknown problem areas. Cross section analysis for all key features. DFA strategy, structure fixation & alignment Reliability review complete - no major issues PMQ clearly documented and agreed EM List with specification linked Long TA chains identified & justified Basic shelled parts available. Simple prototypes for every possible part or assembly Concept history with key decisions documented Risk analysis and back up plans (May not need to share) Identify key areas (new technologies) Lessons learned (that is relevant to the PD phase) Mechanics BOM analyzed Roles and Responsibilities Nokia is the owner of the design Nokia to provide clear instruction for suppliers to continue the development Nokia is responsible for all analysis, while suppliers are supporting under Nokia’s instruction Nokia to provide clear expectations of supplier deliverables Suppliers’ resource to create 2D and 3D under clear Nokia’s instruction and strategy Nokia is ultimately responsible for solutions Nokia clearly controls the interface of different parts that are handled by different suppliers Suppliers’ responsibility includes manufacturing consultations to improve the design Suppliers own the tools as well as qualification process Nokia is responsible for all Nokia key events, milestones. Suppliers support is under Nokia’s instruction. Supplier performs specified product validation of mechanics Nokia owns all IPRs

6. We strive each day to provide our customers with innovative human solutions that deliver exciting user experiences Company Confidential SAN DIEGO MECHANICS Organization and Communication Nokia Program R&D Mechanics Project Manager Nokia Mechanics Team CoRD (VI) Mechanics Lead Supplier Team VI Onsite Project Manager CoRD (Supplier A) Mechanics Support CoRD (Supplier B) Mechanics Support Manufacturing Each Manufacturing supplier will be responsible for their own part in this CoRD mode. Nokia MSM

7. We strive each day to provide our customers with innovative human solutions that deliver exciting user experiences Company Confidential SAN DIEGO MECHANICS Examples Nokia concepting provides detailed designs like this For suppliers to do this Along with – Clear expectations (deliverables, schedule, etc.) General design rationale DFA strategy Alignment and TA map PMQ requirements Etc… Along with – All CoRD related activities Tolerance suggestions for Nokia to review " 3D model and 2D drawings creation per Nokia requirements (Q-checker, etc., 2D guideline) Support Nokia simulation file creations Revisions as needed Document creation per Nokia guideline, such as VQD, mechanical specification, BOM, etc. Advice if available Referencing Mandalay ESI, supplier can use the ESI package Nokia provided and modify the 3D with supplier tooling intent and send it back to Nokia as part of the ESI feedback. In CoRD mode, it is natural for the supplier’s CoRD team to continue owning the 3D and 2D aspect of the design after ESI.

8. We strive each day to provide our customers with innovative human solutions that deliver exciting user experiences Company Confidential SAN DIEGO MECHANICS CoRD Process Example Nokia reviews and approves supplier’s 3d model A problem area in design noticed and design concept with 2D & simple 3D created and communicated to the supplier for tooling feedback Supplier send back their response with risk/concerns and proposed design concepts (in this example they sent 2 proposals) Review their feedback and select appropriate design proposal (in this example, proposal 2 is selected) Supplier does detailed 3d modeling per Nokia feedback or selection or design intent SUPPLIER

9. We strive each day to provide our customers with innovative human solutions that deliver exciting user experiences Company Confidential SAN DIEGO MECHANICS Another example of CoRD process A Simple screen capture is often enough to communicate the design intent for suppliers to conduct the 3D modeling

10. We strive each day to provide our customers with innovative human solutions that deliver exciting user experiences Company Confidential SAN DIEGO MECHANICS Expectations Supplier will provide training to their staff in both technical areas and design methodologies. Suppliers will support Nokia to strive for perfections at each key event Supplier’s home team are the experts in: Catia Q-checker, to enable FEA simulation and ensure part quality Manufacturing process Nokia 2D drawing requirement Other supplier support: Add documentation support under Nokia's guidance, such as VQD, BOM, design specification, etc. Attend FOT and quick testing on manufacturing site, pre-build and pre-build testing and provide feedback Travel to Nokia build and support build Supplier’s onsite PM Good communication skills File transfer through mICE (agreed schedule, for example, twice a week before each file release) Supports Nokia MSM Design ownership Nokia owns the design Suppliers maintains 3D, 2D as well as needed documentations Nokia mechanics team Full design responsibility, including FEA

11. We strive each day to provide our customers with innovative human solutions that deliver exciting user experiences Company Confidential SAN DIEGO MECHANICS Suppliers’ Role Suppliers will not have the design/analysis obligations compared to “mJRD” mode. However, supplier is highly encouraged to recommend alternate solutions. Continue promoting the tooling trials and pre-build testing to drive for perfect B1 Focus on innovation in the manufacturing technology. Propose alternative ways of working to improve the process even further

12. We strive each day to provide our customers with innovative human solutions that deliver exciting user experiences Company Confidential SAN DIEGO MECHANICS Estimated Resource Savings Current1 st CoRD (Suzuka)Savings CS1 to B1 PM+6PM+42 B1 to PD2.5PM+5PM+23 After 1 st program (program for learning and establishing a clear process) Current2 nd CoRD ProgramSavings CS1 to B1 PM+6PM+33 (50% of engineers) B1 to PD2.5PM+5PM+23 (50% of engineers)

13. We strive each day to provide our customers with innovative human solutions that deliver exciting user experiences Company Confidential SAN DIEGO MECHANICS Thank You!