1 © 2005 Nokia

Nokia in IndiaSanjeev Sharma

August 25, 2005New Delhi

2 © 2005 Nokia

1995 2005

Started operations in India in 1995. Providing network equipment and mobile handsets

Sales & Marketing Operations

Nokia India Pvt Ltd , New Delhi office

Localization

(Manufacturing)- Market leader in terminals

- Leading player in networks with business relationship with all leading GSM operators

- 3 R&D facilities in India. Integrated into our global operations

- Deep cooperation & strong relationship with local distribution partners

- Consumer preferred brand

- Localized workforce

- India is among the top 5 markets for Nokia worldwide

India’s first mobile call via Nokia GSM network

and on Nokia handset in 1995

Presence in India for 10 Years

- Setting up of Nokia’s10th global handset manufacturing facility

- Manufacture of network equipment

- Bringing world class technology and manufacturing processes to India

- Creation of industry cluster along with global vendors

Future in India

3 © 2005 Nokia

Strong Presence in India – 800+ employee strength

North• Network Operations • Mobile Phones - Sales & Marketing • Corporate Functions

West• Network Operations • CDMA Testing • Mobile Phones - Sales• Technology Platforms

South• R&D (Bangalore) • Enterprise Solution (Hyderabad)• Mobile Phones – Sales• Proposed Manufacturing Facility ( Chennai)

East• Network Operations • Mobile Phones - Sales

4 © 2005 Nokia

Nokia India - Handset Strategy

Leading Edge ProductsLeading technology & Design Best Quality Products

Best Care Network

Leading Brand Highest Preference

Best Distribution NetworkBest Retail Execution

Increasing preference for color and camera phones

5 © 2005 Nokia

27 2932 31

35 36 37 39 40 42 4244

73 7168 69

65 65 63 61 60 58 5856

51

49

20

30

40

50

60

70

80

May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05

Color Monchrome

Colour Phones as % of Total Market5.9

6.5

8.3 8.6

9.9 9.910.5 11

11.712.8 12.7

13.715.0

2

4

6

8

10

12

14

16

May-04

Jun-04

Jul-04 Aug-04

Sep-04

Oct-04

Nov-04

Dec-04

Jan-05

Feb-05

Mar-05

Apr-05 May-05

Cam

era

Phon

es (%

of t

otal

mar

ket)

Camera Phones as % of Total Market

Source : Gfk ORG Reports

Nokia – Strong Leadership Across Major Segments

Top 10 ModelsMonochrome Colour Phones Camera Phones

Rank Brand Model1 NOKIA 1100

2 NOKIA 1108

3 NOKIA 2300

4 MOTOROLA C 115

5 LG G 1500

6 SAMSUNG N 700

7 SAGEM MYX 1

8 NOKIA 3315

9 MOTOROLA C 138

10 PANASONIC A 102

6 © 2005 Nokia

Rank Brand Model1 NOKIA 2600

2 NOKIA 3120

3 SONY ERICSSON J 200 I

4 NOKIA 6600

5 NOKIA 6610

6 NOKIA 6610 I

7 SAMSUNG C 110

8 NOKIA 2650

9 LG G 1600

10 SAMSUNG C 100

Rank Brand Model1 NOKIA 6600

2 NOKIA 6610 I

3 NOKIA 3230

4 NOKIA 3220

5 NOKIA 6020

6 SONY ERICSSON K 500 I

7 NOKIA 3200

8 NOKIA 7610

9 SONY ERICSSON K 508 I

10 SONY ERICSSON T 610

Source : Gfk ORG Report June’05

Nokia Market Share – Reflected in Brand Preference

GSM Market Share

Nokia Samsung Motorola SonyEricsson

LG Others

Jan'04 Jul'04 Jan'05 June'05

Source: Gfk Top 10 cities (volume shares)

7 © 2005 Nokia

8 © 2005 Nokia

Building “GLOCAL” Brand – Global Imagery with Local Relevance

Nokia’s India-specific initiatives

•1998 - Saare Jahaan Se Acchha – 1st Indian ringtone (Nokia 5110 )

•2000 - First Hindi User Interface ( Nokia 3210)

•2002 - First Hindi text input (Nokia 3610)

•2003 - First Made for India phone (Nokia 1100)

•2004 - Saral Mobile Sandesh - Hindi SMS campaign on Nokia 1100, 1108 & 2300

•2005 – Local UI in additional local languages

Nokia’s India-specific initiatives

•1998 - Saare Jahaan Se Acchha – 1st Indian ringtone (Nokia 5110 )

•2000 - First Hindi User Interface ( Nokia 3210)

•2002 - First Hindi text input (Nokia 3610)

•2003 - First Made for India phone (Nokia 1100)

•2004 - Saral Mobile Sandesh - Hindi SMS campaign on Nokia 1100, 1108 & 2300

•2005 – Local UI in additional local languages

Nokia 1100- The ‘Made for India’ Phone

Localization of Communication

N1100 Campaign

9 © 2005 Nokia

10 © 2005 Nokia

Hindi SMS Campaign- Saral Mobile Sandesh( SMS in Hindi)

Nokia 2600- Har Jeb Mein rang (Colour in Every Pocket)

Local Relevance – Winning Consumer Insight

SaMaSa Campaign

N2600 Campaign

11 © 2005 Nokia

40

50

60

70

80

Q4 '03 Q1 '04 May '04 Q2 '04 Q3 '04 Q4 '04 Q1 '05 Q2'05

Brand Preference

‘Made for India’ campaign Hindi ‘SaMaSa’ campaign

%

Source : Internal On-Track Brand Equity Track

Local Relevance – Strengthening Brand Preference

Nokia Distribution – Largest & most Comprehensive

12 © 2005 Nokia

ConsumerConsumer

Retail OutletsRetail Outlets

Micro distributors

Micro distributors

National DistributorNational

Distributor

Redistribution Stockists – RDSRedistribution Stockists – RDS

Nokia IndiaNokia India

0%

20%

40%

60%

80%

100%

Numeric Distribution Weighted Distribution

Nokia Samsung Motorola SEMC LG

Source : Gfk May’05

Nokia Sales Organization – Closer to the Market

13 © 2005 Nokia

Regional Sales Managers

Sales Officers Area Sales Manager

Nokia Retail – Redefining Paradigms

• Nokia Priority Dealers• Largest organized chain amongst

handset manufacturers

• Presence across 255+ towns

• Superior buying experience to consumers

• Nokia Concept Store• Launched in Delhi and Bangalore

• Destination for evolved replacement consumer

• Encourages live usages, application downloads and product experience

• World class standardized design

14 © 2005 Nokia

Nokia Retail – Redefining Paradigms

15 © 2005 Nokia

• Market making & category creation in small towns

• Nokia VAN Operations• A special purpose van – “ Showroom on

Wheels” operational across the country

• Consistent brand experience and full range of products including live demonstration

• Half a million contacts established

• Widest Care Network

• Presence across 408 cities

• 560 Nokia Care centers with 25 hi-tech facilities

• 18 X 7 Access to Nokia Careline

• From 600 + cities with Single Number

• Multilingual Support – 6 languages

• English, Hindi, Kannada , Tamil, Telugu & Bengali

Nokia Care – Delighting the customers

16 © 2005 Nokia

17 © 2005 Nokia

• Leading the Mobile Convergence category growth & development

• Smart phones

• Mobile Imaging

• Mobile Gaming

• Market leadership position

• India –one of the top markets globally for multi-media phones

Nokia Multimedia – Successful Category Creation

• Global scale telecom industry park at Sriperumbudur ( near Chennai)

• To manufacture mobile phones and base station controller for Networks

• Constituted by Nokia manufacturing unit and co-located vendor/supplier units

• Accorded Special Economic Zone ( SEZ) status

• For domestic as well as export markets• Commercial production by H1’06• Logistically optimal location

• Committed to India• Nokia’s investment ~ $150 million• ~ 2000 direct employment by Nokia• Additional investments and

employment generation by co-located vendor units

18 © 2005 Nokia

Nokia Manufacturing Facility – Committed to India

Nokia telecom SEZ210 AcresSriperumbudur

19 © 2005 Nokia

Looking Forward

Continued strong growth in subscriber

additions in urban areas

Network coverage and new subscribers in rural areas to drive

penetration

Replacement market growth in Tier I & II

Cities