Extending the Lead in APAC Urpo Karjalainen SVP, Customer & Market Operations Asia Pacific
Strong growth continues in the APAC device market 300 Mobile Device Market Volume (m) 200 100 0 >15% 2003 2004 2005 2006E 2007E Source : Nokia estimates Market volumes 2 2006 Nokia
The APAC Landscape South Asia Population (m) Urbanisation % GDP/capita (kusd) Mobile penetration Market volume growth Subscription growth Nokia share Share of Nokia volume 3 2006 Nokia South East Asia Population (m) Urbanisation % GDP/capita (kusd) 2006 (Est.) Mobile penetration >60% ~50% Market volume growth Subscription growth Nokia share Share of Nokia volume 1285 28% 0.7 12% 77% 86% 2006 (Est.) 580 45% 1.5 35% 24% 29% >50% ~40% Source: EIU, UN Stats, Nokia Estimates Population & GDP/Capita based on 2005 estimates North East Asia Population (m) Urbanisation % GDP/capita (kusd) Mobile penetration Market volume growth Subscription growth Nokia share Share of Nokia volume Australasia Population (m) Urbanisation % GDP/capita (kusd) Mobile penetration Market volume growth Subscription growth Nokia share Share of Nokia volume 2006 (Est.) 176 70% 30 77% 5% 5% <5% <5% 2006 (Est.) 25 92% 33 92% 2% 11% ~50% ~10%
Different growth paths and potentials Share Australia Thailand Malaysia Philippines Singapore New Zealand India Indonesia Indochina Bangladesh Japan Korea Volume 4 2006 Nokia
Different market strategies Share 1. Leveraging Brand 2. Experience Strategy 3. Efficiency & Productivity Maintain Volume & Value Growth 1. Product Portfolio 2. Building Brand 3. Relationship Management Grow Share 1. Shaping Channel & Retail 2. Managing Product Mix 3. Targeting growth & market segments Volume 5 2006 Nokia
Maintaining strong volume and value share in SEA & India 80% 60% 40% 20% 0% H2 2004 H1 2005 H2 2005 H1 2006 Q3 2006 Volume Share Value Share Source: GfK (India, Singapore, Malaysia, Vietnam, Thailand, Philippines, Cambodia, Indonesia) 6 2006 Nokia
Clear APAC brand leadership APAC-wide #1 - Asia s Top 1000 Brands research by Synovate (Sept 2006) Platinum Award in Readers Digest Trusted Brand Awards 7 2006 Nokia
Clear APAC brand leadership India #11 and only MNC in top rankings - 2006 Business World - India s Most Respected Businesses Survey + #1 in the consumer durables category #8 2006 India s Great Place to Work list, Brand of the Year by the Confederation of Indian Industry Indonesia 2006 Indonesian Best Brand Award by SWA magazine (leading business publication) 2006 Golden Indonesian Best Brand Award Philippines #1 Mobile Phone Brand Award by GfK Asia 8 2006 Nokia
Competitive APAC brand preference % 71 72 72 73 76 79 4 6 9 8 7 2 2 2 2 3 5 3 2 4 4 5 6 5 Base: APAC (ex Japan, Korea) Main User & Hot Potentials Source: Nokia Brand Tracking Study 9 2006 Nokia Q4 '03 Q2 '04 Q4 '04 Q2 '05 Q4'05 Q2'06
Leadership in distribution India Nokia 2006 End 2004 2National Distributors 120 Regional Distributors 570 Branded Retail Outlets 40,000 Retail Outlets Nokia National Distributors 2004 National Distributors Regional Distributor End 2006 2 National Distributors 123 Regional Distributors 353 Micro Distributors 800+ Branded Retail Outlets 78,000+ Retail Outlets Regional Distributor Micro Distributor Retailers NPD Retailers NPD 10 2006 Nokia Consumers Consumers
Penetrating the India market with branded retail Outlets (approximate) 78,624 32,298 13,620 9,296 19,052 No. of Distributors 2 National & 123 RDS 163 100 80 210 Sales Reps 2,400 650 300 200 600 Source: Outlets - Extrapolation from GfK research (August 06) Other data Nokia market intelligence 11 2006 Nokia
Leadership in distribution SEAZ Nokia 2006 End 2006 85% Independent Distribution 27 National Distributors 1000+ Branded Retail Outlets 50,000 Retail Outlets Widest distribution footprint across SEAZ Distributor KPIs aligned to driving coverage and improving service to retailers Operator Retailers National Distributors Wholesalers Nokia Branded Retail Cover 45% of outlets with Field Force across SEAZ 12 2006 Nokia Consumers
Shaping channel, distribution & retail Channel Structure Efficient & Disciplined, best distribution coverage Assist+ Influence retail, and TCO that delivers competitive advantage Field Force Trained & Effective Field Force to drive demand creation Customer+ Strategic & Execution Focused Account Management Capabilities Competencies Processes Sales Tools 13 2006 Nokia
The visual & purchase experience drives sales Market making & category creation in small towns Nokia VAN Operations special purpose Showroom on Wheels van with a consistent brand experience and full range of products including live demonstration Half a million contacts established 1800+ branded outlets across APAC Over 800 stores with new look by end-2006 14 2006 Nokia
The visual & purchase experience drives sales Arming retail partners with expertise Target over 400,000 individual training sessions by end 2006 14 training vendors qualified and engaged in Academy delivery Strengthening our on-the-ground presence 75% of outlets across APAC are covered by Field Force 15 2006 Nokia
Summary I A high growth region The APAC Environment Diverse markets Brand-conscious Asian consumers Retailer & distributor-driven environment 16 2006 Nokia
Summary II First-mover advantage in the emerging markets Strength of the Nokia brand Nokia s Competitive Advantages Leadership in distribution, retail and field force Close relationships with operators, retailers and distributors Breadth of product portfolio (low end to high tech/premium) 17 2006 Nokia
18 2006 Nokia Nokia World.ppt / 2006-09-07 / Initials