nokia in china
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1 2006 Nokia Nokia World.ppt / 2006-09-07 / Initials
Company Confidential
Nokia in China
Capital Market Days
Colin GilesSenior Vice PresidentCMO, Nokia China
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Company Confidential
Strong Growth Continuing in China
0
10 0
20 0
20 0 3 20 0 4 20 0 5 20 0 6E
MeDceMkVume(m)
0 %
10 %
20 %
30 %
40 %
MeDceP
ao%
Source : Nokia estimates
Market Volume Subscription Penetration
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3 2006 Nokia
Confident & optimistic
Strong national pride
Busy & full life but embrace
fun & leisure
Growing demand for new
experiences & stimulation
Informed consumers Emerging middle-class
Internet & gadget-savvy youth
Quality first Fashion & design key choice criteria
Rural Chinese demand telecom
service
Chinese Consumers
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Seasonality consistent
Market moving to smaller cities;
fragmenting retail in these markets
Large retail chains consolidating
in the larger cities
Operator bundles taking a largershare of the market; China Mobile Super
Low End a strong contributor to growth
Convergence story is beginning
Current Market Trends
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33.9%443MMobile
Phones
0.6%8MDigital
Cameras
8%100MMP3
6.8%88MEmail
9.5%123MInternet
Penetration
(%)
USERS
Converging to Mobile
Source: CNNIC, July06 (Internet); IMI 05-06 (MP3); IResearch 06 (Email),CMMS 06 (Digital Camera); MII Oct06 (Mobile Phones)
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Company Confidential
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Established 21 years ago
Over 7200 employees
External Sales force of 6000+
6 Research & Development Units
Product Creation
Networks Technology
Nokia Research Center
4 Manufacturing Units
Mobile Phone Manufacturing in Beijing
and Dongguan
Networks in Beijing and Suzhou
Nokias presence in China
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Sales of 3.95 billion
EUR in Q1 Q3/06
Year on year sales growth of
over 45%
Nokia exports of over
2.8 BEUR in 2005
13 Quarters of consecutive
market share growth
(Mainland) 36.6 million units sold in
Q1 Q3/06
Nokia in China
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Established a strong sales &
marketing platform
Do not under-estimate
distribution
Presence at Retail Chinese Vendors couldnt follow
through
Quality
Sustainable Investments
R&D
Strong Brand Presence
Nokia SuccessStory
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Company Confidential
Mobile Phone Brand Preference
0
20
40
60
Q4'05 Q1'06 Q2'06 Q3'06
Nokia
Motorola
Samsung
SonyEricsson
Any domesticBrand
DK/NS
Source : Nokia estimates
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Maintain our leadership through Scale
Quality
Distribution/Coverage
Brand
Execution
Enhancing our relationships with National & Provincial Distributors
National & Provincial Retailers Operators
Preparing for 3G
Expanding to newexperience-led domains
Imaging
Music
E-mail
Mobile Internet
Nokia Strategy in China
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Company Confidential
3G opens up the market to competition andnew services
Wheres the subscriber ceiling?
Imaging devices are now well accepted
After SMS Is music the next driver for value
added services growth?
Can mobile phones bring Internet accessto the masses?
Enterprise potential is huge
Market Potential
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Company Confidential
Question
Time