Indirect Sourcing Communications Set for Nokia Internal Use TOPIC: WELCOMING This slide is shown on the screen when people arrive.

Topics Indirect Sourcing in Nokia What is INS The Role of INS at Nokia INS Mission and Value Proposition Key Processes and Tools Sourcing and Purchasing

What is INS? INS is a Nokia-wide platform having responsibility for strategic sourcing and purchasing of Nokia’s indirect products and services INS works in close cooperation with business owners from different business- and horizontal groups to source and purchase the right products and services for Nokia’s requirements INS develops and implements common processes and tools to enable efficient sourcing and purchasing

The Role of INS at Nokia Influence strategy and processes governing all indirect spend All Geographies All Business Units All Platforms Provide indirect purchasing leadership and competence to all functional and business operations Provide professional processes, systems and practices for indirect spend across Nokia Implement cross-functional teams to leverage value from Nokia indirect spend (shared responsibility) Identify synergies across business units and geographies Facilitate demand management including excess asset recycling INS leverages Nokia Indirect spend, increases operating efficiencies and drives value through supply markets

There are two types of Sourcing in Nokia Devices and Service Products Components for devices Software for devices Software for service products Content for services R&D subcontracting services Hosting services Marketing services IT Infrastructure IT Technology (HW and SW) Travel, Facilities Professional services (external resources) Customer Care (contact centers, repair) Manufacturing and Test Equipment Direct Nokia Business Support Processes Indirect

What does this mean in practice? INS is responsible for making sure that Nokia employees can purchase the goods and services they need to run Nokia’s day-to-day business. External Resources Marketing Travel Facility Services IT Hardware, Software & IT Consultancy Operator Services Care Common Processes and Tools Manufacturing and Test Equipment Sprint, Verizon, AT&T, T Mobile, Telstra, Telefónica, Telmex, America Movile, ? Services INS works closely with Nokia business groups to locate and purchase the right products and services for their requirements.

INS Geographic breakdown INS locations INS Purchasing Center

Our Mission To improve Nokia’s business performance through excellence in spend management

We work with our stakeholders to ensure value is delivered INS Value Proposition Create Value Ensure Value Enhance Value Purchasing process Supply Base Management Category Strategies Create Approve Receive Pay Sourcing Process Compliance Processes / SOX Strategic Relationship Management Create Value Create and implement compelling category and sub-category strategies. Translate business needs into supplier agreements that improve cost, service, quality, innovation and environmental sustainability. Ensure Value Improve compliance to agreements, processes and prices through agreements that are easy to implement processes and tools that are fit for purpose and easy to use Enhance Value Continuously improve the value delivered from Nokia’s supply base through the active management of our supplier relationships) We work with our stakeholders to ensure value is delivered Company Confidential 9 © 2008 Nokia

Sourcing and Purchasing Key INS Processes are Sourcing and Purchasing processes that are part of Nokia source to pay process INS has both Sourcing and Purchasing resources source to pay process Sourcing Purchasing/ Transaction Invoice Processing Payment There are several reasons for upgrading the current myNP. To mention some: - we can cover a wider range of products and use catalogues and automate the ordering process - the tool covers the whole purchasing process from PR creation to approval and ordering and finally with receiving of goods and services. Payment can be made by FSP according to pre-approved PR and confirmed GR. - it will be easier to follow purchasing trends and react to changes e.g. by adding in new catalogues or bring in new suppliers INS Processes SAS Processes

Analyse & Develop Approach Sourcing process Scope definition Analysis and Planning Prepare & Engage Drivers, Impact & Risk Internal Information External Information Triggers Analyse & Develop Approach Manage Implement Negotiate & Contract Evaluate Supply Base Operational Management Negotiate & Contract

* Optional or Automatic Purchasing Process Create Purchase Request in myNP Complete pricing and Supplier selection Approve request and and additional Approvers as needed Send Purchase Order to Supplier Confirm “Goods received” when goods have arrived End User / Requestor INS Buyer Approver(s) INS Buyer * End User / Requestor Across Nokia, web-based my Nokia Purchase tool is used for Purchase Orders This is the basic process for all requests. Show the slide during the demo every time you are moving from e.g. PR creation to PR approval. * Optional or Automatic

my Nokia Purchase looks like this.. Create - New order. Product and Service Catalogs My Requests - Own Active Requisitions Tool compatible with IE, Netscape & Mozilla Basic functionalities can be accessed via the “swoosh” or from the left-hand side menu. Approve - Requisitions that are waiting for approval Receive – Confirmation and Receiving of an Order Explore - Own Requisitions & Approvals. Catalogs etc. Ariba(MyNokiaPurchase) access: http://www6.connecting.nokia.com/nho/opereso.nsf/document/ES387DHB6R?OpenDocument