NOKIA CORP [NOK] Filings |
|
NOKIA CORP [NOKBF] Filings |
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20-F | [2024-02-29] |
20-F | [2023-03-02] |
20-F | [2022-03-03] |
20-F | [2021-03-04] |
20-F | [2020-03-05] |
20-F | [2019-03-21] |
20-F | [2018-03-22] |
20-F | [2017-03-23] |
20-F | [2016-04-01] |
20-F | [2015-03-19] |
20-F | [2014-04-30] |
20-F | [2013-03-07] |
20-F | [2012-03-08] |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. | No ☐ | |
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. | Yes ☐ | |
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | No ☐ | |
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | No ☐ | |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” or “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one): |
Accelerated filer ☐ | |
Non-accelerated filer ☐ | Smaller reporting company ☐ |
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. | |
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. | |
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). | ☐ |
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing: |
U.S. GAAP ☐ | |
Other ☐ |
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. | Item 17 ☐ | Item 18 ☐ |
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | Yes ☐ |
Form 20-F Item Number | Form 20-F Heading | Section in Document | |
ITEM | 1 | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS | N/A |
ITEM | 2 | OFFER STATISTICS AND EXPECTED TIMETABLE | N/A |
ITEM | 3 | KEY INFORMATION | |
3A | [Reserved] | ||
3B | Capitalization and Indebtedness | N/A | |
3C | Reasons for the Offer and Use of Proceeds | N/A | |
3D | Risk Factors | Operating and financial review and prospects—Risk factors | |
ITEM | 4 | INFORMATION ON THE COMPANY | |
4A | History and Development of the Company | Cover page; Business overview; Introduction and use of certain terms; Business overview—Our history; Operating and financial review and prospects—Liquidity and capital resources; General Facts on Nokia—Alternative performance measures; Operating and financial review and prospects—Significant subsequent events; Other information— Investor information | |
4B | Business Overview | Business overview—Nokia in 2023; Business overview—Our strategy; Business Overview—Our business groups; Financial statements—Notes to the consolidated financial statements—Note 2.2. Segment information; General facts on Nokia—Government regulation | |
4C | Organizational Structure | Business overview—Nokia in 2023; Financial statements—Notes to the consolidated financial statements—Note 2.2. Segment information; Financial statements—Notes to the consolidated financial statements—Note 6.2. Principal Group companies; Financial statements—Notes to the consolidated financial statements—Note 6.3. Significant partly-owned subsidiaries | |
4D | Property, Plants and Equipment | Financial statements—Notes to the consolidated financial statements—Note 4.2. Property, plant and equipment; Financial statements—Notes to the consolidated financial statements—Note 4.3. Leases; Business overview—Supply chain, sourcing and manufacturing | |
4A | UNRESOLVED STAFF COMMENTS | None | |
ITEM | 5 | OPERATING AND FINANCIAL REVIEW AND PROSPECTS | |
5A | Operating Results | Business overview—Our strategy; General facts on Nokia—Government regulation; Financial statements—Notes to the consolidated financial statements—Section 2. Results for the year; Financial statements—Notes to the consolidated financial statements—Note 5.4. Financial risk management; Operating and financial review and prospects— Operating and financial review | |
5B | Liquidity and Capital Resources | Operating and financial review and prospects—Liquidity and capital resources; Financial statements—Notes to the consolidated financial statements—Note 5.2. Financial assets and liabilities; Financial statements—Notes to the consolidated financial statements—Note 5.3. Derivative and firm commitment assets and liabilities; Financial statements—Notes to the consolidated financial statements—Note 6.1. Commitments, contingencies and legal proceedings; Financial statements—Notes to the consolidated financial statements—Note 5.4. Financial risk management | |
5C | Research and Development, Patents and Licenses etc. | Business overview—Our strategy; Business overview—Nokia Technologies; Operating and financial review and prospects—Results of operations; Operating and financial review and prospects—Results of segments | |
5D | Trend Information | Business overview—Nokia in 2023; Business overview—Our strategy | |
5E | Critical Accounting Estimates | N/A | |
ITEM | 6 | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES | |
6A | Directors and senior management | Corporate governance—Corporate Governance Statement | |
6B | Compensation | Corporate governance—Compensation; Financial statements—Notes to the consolidated financial statements—Note 6.4. Related party transactions; Corporate Governance —Remuneration; Financial Statements—Notes to the consolidated financial statements—Note 3.2. Remuneration of key management | |
6C | Board Practices | Corporate governance—Corporate governance statement; Corporate governance—Remuneration—Remuneration governance | |
6D | Employees | Operating and financial review and prospects—Sustainability and corporate responsibility | |
6E | Share Ownership | Business Overview—Nokia in 2023; Corporate governance—Remuneration—Remuneration Report 2023; Corporate governance—Corporate governance statement; Financial statements—Notes to the consolidated financial statements—Note 3.3. Share-based payments |
Form 20-F Item Number | Form 20-F Heading | Section in Document | |
6F | Disclosure of a registrant’s action to recover erroneously awarded compensation | N/A | |
ITEM | 7 | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS | |
7A | Major Shareholders | Operating and financial review and prospects—Shares and shareholders | |
7B | Related Party Transactions | Financial statements—Notes to the consolidated financial statements—Note 6.4. Related party transactions | |
7C | Interests of Experts and Counsel | N/A | |
ITEM | 8 | FINANCIAL INFORMATION | |
8A | Consolidated Statements and Other Financial Information | Financial statements; Reports of independent registered public accounting firm; Operating and financial review and prospects—Shares and shareholders—Dividend and share buybacks; Financial statements—Notes to the consolidated financial statements—Note 6.1. Commitments, contingencies and legal proceedings | |
8B | Significant Changes | Operating and financial review and prospects—Significant subsequent events; Financial statements—Notes to the consolidated financial statements—Notes 6.5. Subsequent events | |
ITEM | 9 | THE OFFER AND LISTING | |
9A | Offer and Listing Details | Operating and financial review and prospects—Shares and shareholders; Other information—Investor information—Stock exchanges | |
9B | Plan of Distribution | N/A | |
9C | Markets | Operating and financial review and prospects—Shares and shareholders; Financial statements—Notes to the consolidated financial statements—Note 1.1. Corporate information; Investor information; Other information—Investor information—Stock exchanges | |
9D | Selling Shareholders | N/A | |
9E | Dilution | N/A | |
9F | Expenses of the Issue | N/A | |
ITEM | 10 | ADDITIONAL INFORMATION | |
10A | Share capital | N/A | |
10B | Memorandum and Articles of Association | Operating and financial review and prospects—Articles of Association; Other information—Exhibits | |
10C | Material Contracts | N/A | |
10D | Exchange Controls | General facts on Nokia—Controls and procedures—Exchange controls | |
10E | Taxation | General facts on Nokia—Taxation | |
10F | Dividends and Paying Agents | N/A | |
10G | Statement by Experts | N/A | |
10H | Documents on Display | Other information—Investor information—Documents on display | |
10I | Subsidiary Information | N/A | |
ITEM | 11 | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | Business overview—Our strategy; Operating and financial review and prospects—Risk factors—Financial and tax-related uncertainties; Financial statements—Notes to the consolidated financial statements—Note 5.4. Financial risk management; Financial statements—Notes to the consolidated financial statements—Note 4.5. Trade receivables and other customer-related balances |
ITEM | 12 | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES | |
12A | Debt Securities | N/A | |
12B | Warrants and Rights | N/A | |
12C | Other Securities | N/A | |
12D | American Depositary Shares | General facts on Nokia—American Depositary Shares; Introduction and use of certain terms | |
ITEM | 13 | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES | None |
Form 20-F Item Number | Form 20-F Heading | Section in Document | |
ITEM | 14 | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS | None |
ITEM | 15 | CONTROLS AND PROCEDURES | Corporate governance—Corporate governance statement—Risk management, internal control and internal audit functions at Nokia; General facts on Nokia—Controls and procedures |
ITEM | 16 | [Reserved] | |
16A | AUDIT COMMITTEE FINANCIAL EXPERT | Corporate governance—Corporate governance statement—Board of Directors—Committees of the Board of Directors | |
16B | CODE OF ETHICS | Corporate governance—Corporate governance statement—Regulatory Framework; Operating and financial review and prospects—Sustainability and corporate responsibility; Other information—Exhibits | |
16C | PRINCIPAL ACCOUNTANT FEES AND SERVICES | Corporate governance—Corporate governance statement—Auditor fees and services; Corporate governance—Corporate governance statement—Audit Committee pre- approval policies and procedures | |
16D | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES | None | |
16E | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS | Operating and financial review and prospects—Shares and shareholders—Purchases of equity securities by the Company and affiliated purchasers Corporate Governance—Compensation | |
16F | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT | N/A | |
16G | CORPORATE GOVERNANCE | Corporate governance—Corporate governance statement—Regulatory framework | |
16H | MINE SAFETY DISCLOSURE | None | |
16I | DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS | N/A | |
16J | INSIDER TRADING POLICIES | N/A | |
16K | CYBERSECURITY | Corporate governance—Corporate Governance Statement—Risk management, internal control and internal audit functions at Nokia; Operating and financial review and prospects—Risk factors—Risks impacting our competitiveness | |
ITEM | 17 | FINANCIAL STATEMENTS | Financial statements |
ITEM | 18 | FINANCIAL STATEMENTS | Financial statements |
ITEM | 19 | EXHIBITS | Other information—Exhibits |
Our customers | |
Contents | 1 | ||||||||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 2 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 3 | |||||||
Dividend proposed in respect of 2023(2) | Share buyback program announced in January 2024 to return up to |
EUR 0.13 | EUR 600m |
per share | over 2 years |
For the year ended 31 December | |||
EURm | 2023 | 2022 | 2021 |
Net sales | 22 258 | 24 911 | 22 202 |
Gross profit | 8 687 | 10 222 | 8 834 |
Gross margin | 39.0% | 41.0% | 39.8% |
Operating profit | 1 688 | 2 318 | 2 158 |
Operating margin | 7.6% | 9.3% | 9.7% |
Profit for the year(1) | 674 | 4 210 | 1 654 |
EUR | |||
Earnings per share, diluted(1) | 0.12 | 0.74 | 0.29 |
Proposed dividend per share(2) | 0.13 | 0.12 | 0.08 |
At 31 December | |||
EURm | 2023 | 2022 | 2021 |
Net cash and interest-bearing financial investments(3) | 4 323 | 4 767 | 4 615 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 4 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 5 | |||||||
Share of suppliers achieving satisfactory sustainability score(1) from supplier performance evaluation(2) % | ||
(1)Based on aggregated weighted share. (2)Based on Corporate Responsibility onsite audit programs, EcoVadis, CDP, Conflict minerals. | ||
Share of CO2e reduction achieved by final assembly suppliers towards zero emissions target(1) Million metric tons CO2e / % | ||
(1)Against 2019 baseline. |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 6 | |||||||
Gender split at the end of 2023 | ||
18 900 Female | 62 100 Male | 3 500 Blank(1) |
(1)Detail on employee level not collected or is blank |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 7 | |||||||
ESG Rankings and ratings | Score (range: top/bottom) | Latest result | ||
83.03% (industry average: 72.36%) | 2023 Jan | |||
Clean 200 | 82nd out of 200 | 2023 Feb | ||
24th out of 200 | 2023 Mar | |||
Top 1% – Platinum | 2023 Mar | |||
Recognized as one of the 2023 World’s Most Ethical Companies ® | 2023 Mar | |||
ESG Score 4.7/5.0 | 2023 Jun | |||
AAA (AAA/CCC) | 2023 Aug | |||
Prime, B- (A+/D-) | 2023 Oct | |||
Ambassador status | 2023 Oct | |||
11.2 (low risk of experiencing material financial impacts from ESG factors). Jan 2024: Sustainalytics’ 2024 Top-Rated ESG Companies List(3) | 2024 Jan | |||
A- (A/D-) | 2024 Feb | |||
(3)Refers to 2023 result, received in January 2024. |
Network Infrastructure | ||||
Network Infrastructure provides the equipment, software and services that enable all of the physical links that power networks. Its product offering includes IP routing and switching products, and the equipment to power fiber networks along with subsea and terrestrial optical networks. Its customers include communications service providers, webscales and hyperscalers, digital industries and governments. | ||||
Segment net sales (EURm) | Segment operating margin (%) | |||
-11% | ‘+’90 bps | |||
Mobile Networks | ||||
Mobile Networks creates products and services covering all mobile technology generations. Its portfolio includes products for radio access networks (RAN) and microwave radio (MWR) links for transport networks, solutions for network management, as well as network planning, optimization, network deployment and technical support services. | ||||
Segment net sales (EURm) | Segment operating margin (%) | |||
-8% | ‘-’140 bps | |||
Cloud and Network Services | ||||
Cloud and Network Services enables communications service providers (CSPs) and enterprises to deploy and monetize 5G, cloud-native software and as-a-service delivery models. | ||||
Segment net sales (EURm) | Segment operating margin (%) | |||
-4% | ‘+’260 bps | |||
Nokia Technologies | ||||
Nokia Technologies is responsible for managing Nokia’s patent portfolio and monetizing Nokia’s intellectual property including patents, technologies and the Nokia brand. | ||||
Segment net sales (EURm) | Segment operating margin (%) | |||
-32% | –810 bps | |||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 8 | |||||||
READ MORE ON PAGES 23 TO 24 | → |
READ MORE ON PAGES 25 TO 26 | → |
READ MORE ON PAGES 27 TO 28 | → |
READ MORE ON PAGES 29 TO 30 | → |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 9 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 10 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 11 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 12 | |||||||
1 | Communications service providers (CSPs) |
2 | Enterprises |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 13 | |||||||
3 | Licensees |
1 | 2 | 3 | |||||||||||
CSPs | Enterprise | Licensees | |||||||||||
Focus on connectivity strengths and using cost optimization via automation and asset carve outs to fund both fiber and 5G investments Favoring cloud strengths in vendor and partner ecosystem Network monetization targeting enterprise and edge use cases | Enterprise verticals Digitalization and automation of operations in industrial segments Transition to software-centric operations and adoption of industrial operational technology (OT) edge and on-premise clouds Energy and manufacturing as early adopters of private wireless and automation solutions Federal, state government and cities network modernization acceleration | Patent portfolio with long lifetime the vast majority of Nokia’s patents still in force in ten years’ time New inventions every year In 2023, Nokia filed patent applications on more than 2 300 new inventions, enabling 5G networks, connected 5G devices and more Annual number of patent filings expected to grow due to continued investments in R&D and standardization Entire industries powered by our fundamental cellular and multimedia inventions providing us with the opportunity to expand our licensing coverage; we are making good progress in our growth areas of consumer electronics, automotive and IoT | |||||||||||
Webscalers Edge computing as a growth engine – industrial automation workloads across on-premise, edge, public cloud Partnering with CSPs to co-locate edge stacks and building an ecosystem for low-latency apps Targeting telco and network workloads to run on their cloud infrastructure Collaborating with CSPs in the transformation of network operations | |||||||||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 14 | |||||||
Grow CSP business faster than market | 1 | Expand the share of enterprise in our business | 2 | Actively manage our portfolio | 3 | |||||
CSPs will continue to be our biggest customer segment. We will leverage our strong technological position, investment in technology leadership and emerging opportunities to grow our share in key markets, with geopolitical considerations supporting this ambition. | Enterprise verticals and webscalers are deploying campus networks, wide area private wireless networks, enterprise physical networks and data centers at an accelerated rate to digitalize their operations. Being a technology leader in all these domains, we pursue these opportunities to grow our enterprise business. | Maintaining our portfolio segments at number one or number two position, through several routes including active portfolio management, is critical for a profitable and sustainable business. There may be cases where a leadership position is not possible and for these cases, we will consider alternatives. | ||||||||
Secure business longevity in Nokia Technologies | 4 | Build new business models | 5 | Develop ESG into a competitive advantage | 6 | |||||
We are investing to ensure the sustained competitiveness of our patent portfolio. We will continue to pursue opportunities from sectors outside mobile devices, such as automotive, consumer electronics, IoT and video services. | To broaden our customer base and change our margin profile, we see potential in new platform business models within the broader ecosystem. We engage with service providers, webscalers, industrial giants and emerging players like app developers and start-ups, to drive the creation of new products, services, and solutions, and to explore new business models including Cloud RAN, Network as Code and as-a-Service. | ESG is increasingly important for customers, investors, regulators, partners and Nokia employees. There is space in our industry to become the ‘trusted provider’ and Nokia aims to claim this position. Our ESG strategy lays out how we will do this and our specific areas of focus. |
The six pillars are underpinned by four enablers: | |||||||
Develop future- fit-talent | Invest in long-term research | Digitalize our own operations | Refresh our brand | ||||
We have launched and are executing a new people strategy focused on growth, skills and development. We build the right future skills for our employees in the technical domains identified in our technology vision and strategy, and the commercial skills to support our expansion into new domains. | Sustained technology leadership is a key driver of our success: it requires us to anticipate, shape and invest in the next technology waves and breakthroughs. We continue to invest in long-term research to ensure a leadership position in line with our Technology Vision 2030. We are also deeply engaged in leading and influencing standards and developing standard essential patents. | We are increasing the digitalization of our own operations to lead by example with a set of ambitious, company-wide strategic initiatives to increase the company’s performance and competitiveness, focused on efficiency, productivity and agility in internal operations, customer experience and R&D. | To ensure Nokia is recognized as a B2B technology innovation leader, we refreshed our brand in 2023. Our new visual identity is emblematic of an energized, dynamic and modern Nokia. |
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Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 25 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 26 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 27 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 28 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 29 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 30 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 31 | |||||||
Country | Location and products(1) | Productive capacity, net (m2)(2) |
China | Suzhou: radio frequency systems(3) | 13 500 |
Finland | Oulu: base stations | 10 000 |
France | Calais: submarine cables | 61 000 |
Germany | Hannover: radio frequency systems(4) | 23 500 |
India | Chennai: base stations, radio controllers and transmission systems, fixed networks | 15 500 |
UK | Greenwich: submarine cables | 11 000 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 32 | |||||||
General Meeting of Shareholders | |
Board of Directors | |
Group Leadership Team and the President and CEO | |
Remuneration | |
Remuneration Report 2023 | |
Letter from the Chair of the Personnel Committee of the Board | |
The updated Remuneration Policy for the Board of Directors | |
The updated Remuneration Policy for the President and CEO | |
Remuneration of the Nokia Group Leadership Team in 2023 | |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 33 | |||||||
Select highlights in our corporate governance during 2023 ■Our 2023 Annual General Meeting saw a record number of shareholders and votes represented and strong shareholder support for all the Board’s proposals. ■We were proud to lead the introduction of the individual director election method in the Finnish market and provide our shareholders with the opportunity to consider each candidate separately in our 2023 Annual General Meeting. ■We implemented the Executive Officer Clawback Policy, meeting the NYSE listing standards issued in response to the US Securities and Exchange Commission’s 2023 rules implementing the incentive-based compensation recovery provisions of the Dodd-Frank Act. In addition, we refreshed our all-employee Clawback Policy on incentive compensation. ■We were pleased to host multiple meetings with our largest shareholders to discuss Nokia’s sustainability, remuneration and governance approach. | ||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 34 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 35 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 36 | |||||||
Gender | Year of Birth | Nationality | Tenure(1) | Independent of the company and major shareholders | Shares(2) | ADSs(2) | |
Sari Baldauf (Chair) | Female | 1955 | Finnish | 5 | Independent | 290 575 | |
Søren Skou (Vice Chair) | Male | 1964 | Danish | 4 | Independent | 89 325 | |
Timo Ahopelto | Male | 1975 | Finnish | 0 | Independent | 21 418 | |
Elizabeth Crain | Female | 1964 | American | 0 | Independent | 22 771 | |
Thomas Dannenfeldt | Male | 1966 | German | 3 | Independent | 117 597 | |
Lisa Hook | Female | 1958 | American | 1 | Independent | 35 626 | |
Jeanette Horan | Female | 1955 | British | 6 | Independent | 116 476 | |
Thomas Saueressig | Male | 1985 | German | 1 | Independent | 34 705 | |
Carla Smits-Nusteling | Female | 1966 | Dutch | 7 | Independent | 135 973 | |
Kai Öistämö | Male | 1964 | Finnish | 1 | Independent | 35 724 | |
(1)Terms as Nokia Board member before the Annual General Meeting on 4 April 2023. (2)The number of shares or ADSs includes shares and ADSs received as director compensation as well as shares and ADSs acquired through other means. Stock options or other equity awards that are deemed as being beneficially owned under the applicable SEC rules are not included. |
Business Exec role with P&L responsibility | External boardroom roles/ Governance expertise | Finance and accounting | Legal /Public policy/ Compliance | Communications service provider market segment | Enterprise market segment | Technology | Cybersecurity | Environmental/ Social issues | |
Current Board members | |||||||||
Sari Baldauf | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | |||
Søren Skou | ✔ | ✔ | ✔ | ✔ | ✔ | ||||
Timo Ahopelto | ✔ | ✔ | ✔ | ✔ | ✔ | ||||
Elizabeth Crain | ✔ | ✔ | ✔ | ✔ | |||||
Thomas Dannenfeldt | ✔ | ✔ | ✔ | ✔ | ✔ | ||||
Lisa Hook | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | ||
Jeanette Horan | ✔ | ✔ | ✔ | ✔ | ✔ | ||||
Thomas Saueressig | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | ||
Carla Smits-Nusteling | ✔ | ✔ | ✔ | ✔ | |||||
Kai Öistämö | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | |||
Proposed new Board member | |||||||||
Michael McNamara | ✔ | ✔ | ✔ | ✔ | ✔ |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 37 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 38 | |||||||
Chair Sari Baldauf | Vice Chair Søren Skou | Timo Ahopelto | Elizabeth Crain | ||||
b. 1955 | b. 1964 | b. 1975 | b. 1964 | ||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 39 | |||||||
Thomas Dannenfeldt | Lisa Hook | Jeanette Horan | ||||||
b. 1966 | b. 1958 | b. 1955 | ||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 40 | |||||||
Thomas Saueressig | Carla Smits-Nusteling | Kai Öistämö | ||||||
b. 1985 | b. 1966 | b. 1964 | ||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 41 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 42 | |||||||
January | February/March | April | May | July | September/October | November | |
Board | –Business and financial reviews –Q4 and 2022 financials –AGM proposals, incl. profit distribution –Annual Policy and Charter review –Board evaluation –Review of CEO’s performance, remuneration and targets | –Annual report and 20-F –Remuneration Report 2022 | –Annual General Meeting (AGM) and appointing Board Chair, Vice Chair and Committee members –Business and financial reviews –Strategy –Q1 financials | –Business and financial reviews –Strategy –Geopolitical update –Product and customer security update –Digitalization update –Ethics & compliance update –Litigation update –People strategy and Group Leadership Team (GLT) succession approach update | –Business and financial reviews –Q2 financials –Strategy –Annual ESG review | –Annual strategy meeting –Geopraphical market deep-give –Business and financial reviews –Q3 financials | –Business and financial reviews –Strategy –Long-range forecast and annual target setting –Key risks review –GLT succession planning update –Investors’ feedback on governance, remuneration and sustainability |
Corporate Governance and Nomination Committee | –AGM proposals on Board composition and remuneration –Independence review –Corporate governance statement | –Committee compositions –Future Board composition –AGM shareholder feedback | –Planning of Board composition proposal | –Corporate governance and ESG-related developments in regulation –Planning of Board composition proposal –Board evaluation approach | –Board remuneration review and benchmarking –Annual assessment of director commitments –Finalizing Board composition proposal to the AGM –Annual Charter review | ||
Personnel Committee | –Incentive achievements for 2022 –CEO and GLT performance –Incentive targets and objectives for 2023 –Long-term Incentive Plan (LTI) grant proposal for 2023 –Remuneration Report 2022 | –LTI design for 2024–2026 –Equity plan status –AGM shareholder feedback –GLT remuneration –Culture update –GLT succession approach –Clawback Policy related regulation | –Remuneration Policy 2024 structure review –Executive Clawback Policy –LTI design for 2024–2026 –Human capital risk review, including physical safety –Committee adviser’s market and benchmarking update | –Incentive Compensation Clawback Policy –LTI design for 2024–2026 –Human capital update –Remuneration Policy 2024 including shareholder consultation | –2024 incentive targets –LTI Plan 2024–2026 –Investor feedback –Planning of Remuneration Report for 2023 –GLT succession planning –Executive shareholding assessment –Annual Charter review | ||
Audit Committee | –Q4 and 2022 financials –Auditor reporting –Ethics and compliance, internal audit and internal controls updates –AGM proposals to the Board –Annual Policy review | –Annual report and 20-F for 2022, including Sustainability reporting –Auditor reporting –Internal controls update | –Q1 financials –Auditor reporting –Ethics and compliance, internal audit and internal controls updates –Treasury update –IT and service security update –Tax update –Conflict Minerals Report | –Q2 financials –Auditor reporting –Ethics and compliance, internal audit and internal controls updates –Finance IT and digitalization | –Q3 financials –Auditor reporting –Ethics and compliance, internal audit and internal controls updates –ESG disclosure and reporting developments, processes and controls –IT and service security updates | –Treasury update –Pensions update –Audit, internal audit and internal controls updates –Privacy update –Annual Charter and Policy review | |
Technology Committee | –Updates on major innovation and technology trends –Review of strategic technology initiatives | –Updates on major innovation and technology trends –Review of strategic technology initiatives –Cybersecurity: product and customer safety | –Sustainability technology strategy –Updates on major innovation and technology trends –Review of strategic technology initiatives | –Updates on major innovation and technology trends –Review of strategic technology initiatives –Cybersecurity: product and customer security |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 43 | |||||||
Board meeting attendance | Board and Committee meeting attendance(1) | ||||
Member | Meetings | % | Meetings | % | |
Sari Baldauf (Chair) | 15/15 | 100 | 28/28 | 100 | |
Søren Skou (Vice Chair) | 15/15 | 100 | 23/23 | 100 | |
Timo Ahopelto (as of 4 April 2023) | 11/11 | 100 | 18/18 | 100 | |
Bruce Brown (until 4 April 2023) | 4/4 | 100 | 8/8 | 100 | |
Elizabeth Crain (as of 4 April 2023) | 11/11 | 100 | 19/19 | 100 | |
Thomas Dannenfeldt | 15/15 | 100 | 26/26 | 100 | |
Lisa Hook | 15/15 | 100 | 24/24 | 100 | |
Jeanette Horan | 14/15 | 93 | 24/25 | 96 | |
Edward Kozel (until 4 April 2023) | 4/4 | 100 | 7/7 | 100 | |
Thomas Saueressig | 15/15 | 100 | 19/19 | 100 | |
Carla Smits-Nusteling | 15/15 | 100 | 26/26 | 100 | |
Kai Öistämö | 15/15 | 100 | 24/24 | 100 | |
Average attendance (%) | 99.4 | 99.7 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 44 | |||||||
Member | Attendance (meetings) | Attendance (%) |
Carla Smits-Nusteling (Chair) | 6/6 | 100 |
Timo Ahopelto (as of 4 April 2023) | 4/4 | 100 |
Elizabeth Crain (as of 4 April 2023) | 4/4 | 100 |
Thomas Dannenfeldt | 6/6 | 100 |
Lisa Hook (until 4 April 2023) | 2/2 | 100 |
Jeanette Horan | 6/6 | 100 |
Edward Kozel (until 4 April 2023) | 2/2 | 100 |
Average attendance (%) | 100 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 45 | |||||||
Member | Attendance (meetings) | Attendance (%) |
Søren Skou (Chair as of 4 April 2023) | 3/3 | 100 |
Sari Baldauf | 5/5 | 100 |
Bruce Brown (until 4 April 2023) | 2/2 | 100 |
Lisa Hook (as of 4 April 2023) | 3/3 | 100 |
Carla Smits-Nusteling | 5/5 | 100 |
Kai Öistämö | 5/5 | 100 |
Average attendance (%) | 100 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 46 | |||||||
Member | Attendance (meetings) | Attendance (%) |
Thomas Dannenfeldt (Chair as of 4 April 2023) | 5/5 | 100 |
Sari Baldauf | 5/5 | 100 |
Bruce Brown (until 4 April 2023) | 1/1 | 100 |
Elizabeth Crain (as of 4 April 2023) | 4/4 | 100 |
Lisa Hook (as of 4 April 2023) | 4/4 | 100 |
Søren Skou | 5/5 | 100 |
Average attendance (%) | 100 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 47 | |||||||
Member | Attendance (meetings) | Attendance (%) |
Kai Öistämö (Chair) | 4/4 | 100 |
Timo Ahopelto (as of 4 April 2023) | 3/3 | 100 |
Sari Baldauf (as of 4 April 2023) | 3/3 | 100 |
Bruce Brown (until 4 April 2023) | 1/1 | 100 |
Jeanette Horan | 4/4 | 100 |
Edward Kozel (until 4 April 2023) | 1/1 | 100 |
Thomas Saueressig | 4/4 | 100 |
Average attendance (%) | 100 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 48 | |||||||
Name | Position | Gender | Year of birth | Nationality | On GLT since | Shares |
Pekka Lundmark | President and CEO | Male | 1963 | Finnish | 2020 | 1 473 060 |
Nishant Batra | Chief Strategy and Technology Officer | Male | 1978 | Indian | 2021 | 484 473 |
Ricky Corker | Chief Customer Experience Officer | Male | 1967 | Australian | 2019 | 437 199 |
Federico Guillén | President of Network Infrastructure | Male | 1963 | Spanish | 2016 | 453 764 |
Amy Hanlon-Rodemich | Chief People Officer | Female | 1972 | American | 2022 | - |
Jenni Lukander | President of Nokia Technologies | Female | 1974 | Finnish | 2019 | 102 297 |
Esa Niinimäki | Chief Legal Officer | Male | 1976 | Finnish | 2023 | 33 588 |
Raghav Sahgal | President of Cloud and Network Services | Male | 1962 | American | 2020 | 569 659 |
Melissa Schoeb | Chief Corporate Affairs Officer | Female | 1968 | American | 2021 | 161 367 |
Tommi Uitto | President of Mobile Networks | Male | 1969 | Finnish | 2019 | 246 945 |
Marco Wirén | Chief Financial Officer | Male | 1966 | Finnish/Swedish | 2020 | 277 610 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 49 | |||||||
Pekka Lundmark | Nishant Batra | Ricky Corker | Federico Guillén | |||||
b. 1963 | b. 1978 | b. 1967 | b. 1963 | |||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 50 | |||||||
Amy Hanlon-Rodemich | Jenni Lukander | Esa Niinimäki | Raghav Sahgal | |||||
b. 1972 | b. 1974 | b. 1976 | b. 1962 | |||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 51 | |||||||
Melissa Schoeb | Tommi Uitto | Marco Wirén | ||||||
b. 1968 | b. 1969 | b. 1966 | ||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 52 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 53 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 54 | |||||||
EURm | 2023 | 2022 |
Audit fees(1) | 20.2 | 22.7 |
Audit-related fees(2) | 1.7 | 0.8 |
Tax fees(3) | 0.4 | 0.4 |
All other fees(4) | 0.3 | 0.2 |
Total | 22.6 | 24.1 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 55 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 56 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 57 | |||||||
Delivering the next year’s step in the strategic plan – STI | |
Operating Profit 60% | Cash Release 20% |
Continued focus on profitability | Achieve a strong cash position |
Health & safety 10% – Lost Time Injury Frequency Rate (with a fatality modifier) | Diversity 10% |
Deliver on our focus on the continued health and safety of our employees | Deliver on our commitment to become a more diverse employer |
Delivering sustainable value – LTI | |
50% relative TSR, 40% cumulative reported EPS (adjusted for impairments and M&A), 10% carbon emission reduction (Scope 1, 2 and 3) | |
A more rounded and balanced approach reflecting performance over the long term in growing the business and in delivering shareholder value whilst working towards our 2030 goal of 50% carbon emission reduction |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 58 | |||||||
Year | Aggregate remuneration of the Board of Directors (EUR)(1) | President and CEO actual remuneration (EUR)(2) | Average salaries and wages (EUR)(3) | Net sales (EURm) | Total shareholder return (rebased to 100 at 31 Dec 2018)(4) |
2019 | 2 219 000 | 3 897 625 | 61 980 | 23 315 | 66.90 |
2020 | 2 016 000 | 3 587 781 | 65 787 | 21 852 | 63.95 |
2021 | 1 821 000 | 4 908 244 | 70 411 | 22 202 | 113.13 |
2022 | 2 280 000 | 4 316 606 | 74 100 | 24 911 | 88.94 |
2023 | 2 503 000 | 3 738 560 | 69 074 | 22 258 | 64.68 |
(1)Aggregate total remuneration paid to the members of the Board during the financial year as annual fee and meeting fee, as applicable, and as approved by general meetings of shareholders. The value depends on the number of members elected to the Board for each term as well as on the composition of the Board committees and travel required. During the term that began from the Annual General Meeting 2021, the Board had eight members only, compared to ten members during the following terms. (2)The President and CEO actual remuneration represents the aggregate total of the two CEOs in 2020. (3)Average salaries and wages are based on average employee numbers and their total salaries and wages as reported in the Company’s financial statements. (4)Total shareholder return on last trading day of the previous year. |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 59 | |||||||
Board remuneration for the term that began at the Annual General Meeting held on 4 April 2023 and ends at the close of the Annual General Meeting in 2024 consisted of the following fees. |
Annual fee | EUR |
Chair | 440 000 |
Vice Chair | 210 000 |
Member | 185 000 |
Chair of Audit Committee | 30 000 |
Member of Audit Committee | 15 000 |
Chair of Personnel Committee | 30 000 |
Member of Personnel Committee | 15 000 |
Chair of Technology Committee | 20 000 |
Member of Technology Committee | 10 000 |
Meeting fee(1) | EUR |
Meeting requiring intercontinental travel | 5 000 |
Meeting requiring continental travel | 2 000 |
The following table outlines the total annual remuneration paid in 2023 to the members of the Board for their services, as resolved by the shareholders at the Annual General Meeting. |
Annual fees (EUR) | Meeting fees (EUR)(1) | Total remuneration paid (EUR) | 60% of annual fees and all meeting fees paid in cash (EUR) | 40% of annual fees paid in shares (EUR) | Number of shares (approximately 40% of the annual fee) | |
Sari Baldauf (Chair) | 465 000 | 10 000 | 475 000 | 289 000 | 186 000 | 47 427 |
Søren Skou (Vice Chair) | 225 000 | 14 000 | 239 000 | 149 000 | 90 000 | 22 948 |
Timo Ahopelto | 210 000 | 10 000 | 220 000 | 136 000 | 84 000 | 21 418 |
Bruce Brown (until 4 April 2023)(2) | — | 5 000 | 5 000 | 5 000 | — | — |
Elizabeth Crain | 215 000 | 15 000 | 230 000 | 144 000 | 86 000 | 21 928 |
Thomas Dannenfeldt | 230 000 | 9 000 | 239 000 | 147 000 | 92 000 | 23 458 |
Lisa Hook | 200 000 | 17 000 | 217 000 | 137 000 | 80 000 | 20 399 |
Jeanette Horan | 210 000 | 10 000 | 220 000 | 136 000 | 84 000 | 21 418 |
Edward Kozel (until 4 April 2023)(2) | — | 5 000 | 5 000 | 5 000 | — | — |
Thomas Saueressig | 195 000 | 14 000 | 209 000 | 131 000 | 78 000 | 19 889 |
Carla Smits-Nusteling | 215 000 | 14 000 | 229 000 | 143 000 | 86 000 | 21 928 |
Kai Öistämö | 205 000 | 10 000 | 215 000 | 133 000 | 82 000 | 20 908 |
Total | 2 370 000 | 133 000 | 2 503 000 | 1 555 000 | 948 000 | 241 721 |
(1)Meeting fees include all meeting fees paid for the term that ended at the Annual General Meeting held on 4 April 2023 and meeting fees accrued and paid in 2023 for the term that began at the same meeting. (2)Stepped down at the Annual General Meeting on 4 April 2023 and received only one meeting fee in 2023. |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 60 | |||||||
EUR | 2023 | Pay mix(1) | 2022 | Pay mix(1) |
Salary | 1 322 750 | 36% | 1 300 000 | 31% |
Short-term incentive(2) | 1 079 695 | 30% | 2 342 438 | 56% |
Long-term incentive | 1 240 359 | 34% | 560 318 | 13% |
Other compensation(3) | 95 756 | 113 850 | ||
Total | 3 738 560 | 4 316 606 |
Metric | Weight | Target | STI outcome (% of target) |
Economic Profit(1) | 70% | EUR 1 851 million | 37% |
Diversity | 10% | Female percentage of global external hires of 28% | 90% |
Carbon emission reduction Scope 1&2 | 5% | 221 652 tCO2e | 225% |
Carbon emission reduction Scope 3 | 5% | ■Finalize Nokia’s Net Zero Roadmap and transition plan ■Achieve each business group’s committed roadmap milestones towards higher energy-efficient products and services | 83.03% |
Personal strategic objectives | 10% | ■Define the 2030 technology and business vision ■Develop alternative value creation strategies beyond the 3-year long-range plan | 150% |
Total STI outcome | 100% | 65.30% |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 61 | |||||||
Performance share awards granted during the year(2) | Units granted | Grant date face value (EUR)(3) | Grant date | Vesting |
2023 LTI performance shares | 635 700 | 2 434 731 | 6 July 2023 | Q3 2026 |
Restricted share awards vested during the year | Units granted | Target | Achievement | Units vested | Value of vested award(1) (EUR) |
2020 Restricted Share award final tranche (3/3) | 117 467 | N/A | N/A | 117 467 | 380 590 |
LTI performance shares vested during the year | Units granted | Target share price (EUR) | Share price achievement (EUR) | Vesting outcome (% of target) | Units vested | Value of vested award(1) (EUR) |
2020 LTI performance shares | 671 800 | 3.67 | 3.21 | 39.5% | 265 361 | 859 770 |
eLTI matching performance shares vested during the year | Units granted | Target share price (EUR) | Share price achievement (EUR) | Vesting outcome (% of target) | Units vested |
2020 eLTI matching performance shares | 1 390 894 | 5.35 | 3.72 | 0.00 | 0 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 62 | |||||||
Pekka Lundmark | Units | Value(1) (EUR) |
Beneficially owned shares at 31 December 2023 | 1 473 060 | 4 495 779 |
Unvested shares under outstanding Nokia equity plans(2) | 2 910 980 | 8 884 310 |
Total | 4 384 040 | 13 380 089 |
Termination by | Reason | Notice | Compensation |
Nokia | Cause | None | The President and CEO is entitled to no additional remuneration and all unvested equity awards would be forfeited after termination. |
Nokia | Reasons other than cause | Up to 12 months | The President and CEO is entitled to a severance payment equaling up to 12 months’ remuneration (including annual base salary, benefits, and target short- term incentive) and unvested equity awards would be forfeited after termination. |
President and CEO | Any reason | 12 months | The President and CEO may terminate his service agreement at any time with 12 months’ notice. The President and CEO would either continue to receive salary and benefits during the notice period or, at Nokia’s discretion, a lump sum of equivalent value. Additionally, the President and CEO would be entitled to any short- or long-term incentives that would normally vest during the notice period. Any unvested equity awards would be forfeited after termination. |
President and CEO | Nokia’s material breach of the service agreement | Up to 12 months | In the event that the President and CEO terminates his service agreement based on a final arbitration award demonstrating Nokia’s material breach of the service agreement, he is entitled to a severance payment equaling up to 12 months’ remuneration (including annual base salary, benefits and target incentive). Any unvested equity awards would be forfeited after termination. |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 63 | |||||||
Fees | Fees consist of annual fees and meeting fees. Approximately 40% of the annual fee is paid in Nokia shares purchased from the market on behalf of the Board members or alternatively delivered as treasury shares held by the Company. The balance is paid in cash, most of which is typically used to cover taxes arising from the paid remuneration. Meeting fees are paid in cash. |
Incentives | Non-executive directors are not eligible to participate in any Nokia incentive plans and do not receive performance shares, restricted shares or any other equity-based or other form of variable compensation for their duties as members of the Board. |
Pensions | Non-executive directors do not participate in any Nokia pension plans. |
Share ownership requirement | Members of the Board shall normally retain until the end of their directorship such number of shares that corresponds to the number of shares they have received as Board remuneration during their first three years of service on the Board (the net amount received after deducting those shares needed to offset any costs relating to the acquisition of the shares, including taxes). |
Other | Directors are compensated for travel and accommodation expenses as well as other costs directly related to Board and Committee work. These are paid in cash. |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 64 | |||||||
Remuneration element | Purpose and link to strategy | Operation including maximum opportunity | Performance conditions |
Base salary | To attract and retain individuals with the requisite level of knowledge, skills and experience to lead our businesses | Base salary is normally reviewed annually taking into consideration a variety of factors, including but not limited to, performance of the Company and the individual, remuneration of our external peer group, changes in individual responsibilities and employee salary increases. | Whilst there are no performance targets attached to the payment of base salary, performance is considered as context in the annual salary review. |
Pension | To provide retirement benefit aligned with local country practice | Pension arrangements reflect the relevant market practice and may evolve year on year. The President and CEO may participate in the applicable pension programs available to other executives in the country of employment. The current President and CEO participates in the Finnish statutory Employee’s Pension Act (TyEL); there is no supplementary pension plan. The retirement age is the statutory retirement age in Finland. | N/A |
Benefits | To provide a competitive level of benefits and to support recruitment and retention | Benefits will be provided in line with local market practice in the country of employment and may evolve year on year. Benefits may include, for example, a company car (or cash equivalent), risk benefits (for example life and disability insurance) and employer contributions to insurance plans (for example medical insurance). Additional benefits and allowances may be offered in certain circumstances such as relocation support, expatriate allowances, and temporary living and transportation expenses aligned with Nokia’s mobility policy. | N/A |
Short-term incentive (STI) | To incentivize and reward performance against delivery of the annual business plan | STI is based on performance against one-year financial and non-financial targets and normally paid in cash. Minimum payout is 0% of base salary. Target opportunity is 125% of base salary. Maximum opportunity is 281.25% of base salary. The Company Clawback Policies apply. | Performance measures, weightings and targets for the selected measures are set at the start of the year annually by the Board of Directors to ensure they continue to support Nokia’s short-term business strategy. These measures can vary from year to year to reflect business priorities and may include a balance of financial, key operational and non-financial measures. Although the performance measures and weighting may differ year on year reflecting the business priorities, in any given year, a minimum of 60% of measures will be based on financial criteria. Performance metrics and weightings are disclosed retrospectively in the annual Remuneration Report. |
Long-term incentive (LTI) – performance share award | To reward for delivery of sustainable long-term performance, align the President and CEO’s interests with those of shareholders and aid retention | Long-term incentive awards may be made annually in shares, vesting normally after three years dependent on the achievement of stretching performance conditions measured over a three-year period. Target award level is 200% of base salary at the date of grant, with maximum vesting of 400% of base salary. The Company Clawback Policies apply. | Performance measures, weightings and targets for the selected measures are set by the Board of Directors to ensure they continue to support Nokia’s long-term business strategy and financial success. Targets are set in the context of Nokia’s long-term plans and analyst forecasts, ensuring that they are considered both achievable and sufficiently stretching. The Committee may choose different measures and weightings each year based on the business plan and these will consist of at least 60% financial measures and/or share price-related measures. Performance metrics and weightings are disclosed retrospectively in the annual Remuneration Report. |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 65 | |||||||
Remuneration element | Purpose and link to strategy | Operation including maximum opportunity | Performance conditions |
Enhanced LTI (eLTI) – co-investment arrangement | To further align the President and CEO’s interests with Nokia’s long-term success and shareholder interests | To further align the President and CEO’s interests with Nokia’s long-term success and shareholder interests eLTI is only granted in exceptional circumstances. The President and CEO may be invited, at the discretion of the Board, to purchase investment shares of up to 200% of base salary, and in return, receive two matching shares for every one investment share purchased. The matching shares are delivered in the form of performance shares, typically subject to the same performance conditions as for the LTI performance share award, with a three-year performance and vesting period. The minimum vesting of the matching shares is 0% of base salary and maximum vesting is two times grant level. The Company Clawback Policies apply. | The performance metrics, targets and weightings for the matching shares are typically the same as those for LTI performance shares granted in the same year. |
Shareholding requirement | To align the President and CEO’s interests with shareholder interests and ensure any decisions made are in the long-term interest of the Company | The President and CEO is required to build and maintain a shareholding equivalent to 300% of base salary, to be achieved normally within five years of appointment. | N/A |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 66 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 67 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 68 | |||||||
At the end of 2023, the Group Leadership Team consisted of 11 persons split between Finland, other European countries, Singapore and the United States. For information regarding the current Group Leadership Team composition, refer to the Corporate Governance Statement. |
Name | Position in 2023 | Appointment date |
Pekka Lundmark | President and CEO | 1 August 2020 |
Nishant Batra | Chief Strategy and Technology Officer | 18 January 2021 |
Ricky Corker | Chief Customer Experience Officer | 1 January 2019 |
Federico Guillén | President of Network Infrastructure | 8 January 2016 |
Amy Hanlon-Rodemich | Chief People Officer | 24 October 2022 |
Jenni Lukander | President of Nokia Technologies | 1 August 2019 |
Esa Niinimäki | Chief Legal Officer | 25 January 2023 |
Raghav Sahgal | President of Cloud and Network Services | 1 June 2020 |
Melissa Schoeb | Chief Corporate Affairs Officer | 12 April 2021 |
Tommi Uitto | President of Mobile Networks | 31 January 2019 |
Marco Wirén | Chief Financial Officer | 1 September 2020 |
Remuneration of the Group Leadership Team members in 2023 Remuneration of the Group Leadership Team (excluding the President and CEO) in 2022 and 2023, in the aggregate, was as follows: |
EURm⁽¹⁾ | 2023 | 2022 |
Salary, short-term incentives and other compensation(2) | 10.8 | 13.6 |
Long-term incentives(3) | 2.5 | 7.0 |
Total | 13.3 | 20.6 |
(1)The values represent each member’s time on the Group Leadership Team. (2)Short-term incentives represent amounts earned in respect of 2023 performance. Other compensation includes mobility-related payments, local benefits and pension costs. (3)The amounts represent the equity awards that vested in 2023 and 2022. |
The members of the Group Leadership Team (excluding the President and CEO) were awarded the following equity awards under the Nokia equity program in 2023: |
Award | Units awarded(1) | Grant date fair value (EUR) | Grant date | Vesting |
Performance share award(2) | 1 858 500 | 7 118 055 | 6 July 2023 | Q3 2026 |
Restricted share award(3) | 1 454 000 | 4 376 540 | 15 December 2023 | Q4 2024, Q4 2025 |
(1)Includes units awarded to persons who were Group Leadership Team members during 2023. (2)The 2023 performance shares have a three-year performance period based on absolute total shareholder return. The maximum payout is 200% subject to maximum performance against the performance criteria. Vesting is subject to continued employment. (3)Vesting of each tranche of the restricted share awards is conditional on continued employment. |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 69 | |||||||
Shares receivable through performance shares at grant | Shares receivable through performance shares at maximum(4) | Shares receivable through restricted shares | |
Number of equity awards held by the Group Leadership Team(1) | 9 556 958 | 19 113 916 | 1 454 000 |
% of the outstanding shares(2) | 0.17% | 0.35% | 0.03% |
% of the total outstanding equity incentives (per instrument)(3) | 22.19% | 23.26% | 1.55% |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 70 | |||||||
ABB | IBM |
Adobe | Infineon Technologies |
Airbus | Juniper Networks |
ASML | Kone |
Atos | Motorola Solutions |
BAE Systems | NXP Semiconductors |
Capgemini | Oracle |
Ciena | Philips |
Cisco Systems | SAP |
Corning | Siemens Healthineers |
Dell Technologies | VMware |
Ericsson | Vodafone Group |
Hewlett Packard Enterprise | Wärtsilä |
HP |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 71 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 72 | |||||||
EURm (except for percentage and personnel data) | 2023 | 2022 | 2021 |
From the consolidated income statement | |||
Net sales | 22 258 | 24 911 | 22 202 |
Operating profit | 1 688 | 2 318 | 2 158 |
% of net sales | 7.6% | 9.3% | 9.7% |
Profit before tax | 1 499 | 2 184 | 1 926 |
Profit from continuing operations | 674 | 4 210 | 1 654 |
Profit/(loss) from discontinued operations | 5 | 49 | (9) |
Profit for the year | 679 | 4 259 | 1 645 |
From the consolidated statement of financial position | |||
Non-current assets | 21 694 | 22 677 | 20 452 |
Current assets | 18 087 | 20 266 | 19 597 |
Assets held for sale | 79 | — | — |
Total assets | 39 860 | 42 943 | 40 049 |
Total shareholders' equity | 20 537 | 21 333 | 17 360 |
Non-controlling interests | 91 | 93 | 102 |
Total equity | 20 628 | 21 426 | 17 462 |
Interest-bearing liabilities(1) | 4 191 | 4 477 | 4 653 |
Lease liabilities(1) | 997 | 1 042 | 1 009 |
Provisions(1) | 1 262 | 1 435 | 1 569 |
Other liabilities(1) | 12 782 | 14 563 | 15 356 |
Total shareholders’ equity and liabilities | 39 860 | 42 943 | 40 049 |
Other information | |||
Research and development expenses | (4 327) | (4 550) | (4 214) |
% of net sales | (19.4)% | (18.3)% | (19.0)% |
Capital expenditure(2) | (652) | (601) | (560) |
% of net sales | (2.9)% | (2.4)% | (2.5)% |
Personnel expenses | (7 470) | (7 903) | (7 541) |
Average number of employees | 86 689 | 86 896 | 87 927 |
Order backlog, EUR billion | 22.0 | 19.5 | 20.3 |
EURm (except for percentage and personnel data) | 2023 | 2022 | 2021 |
Key financial indicators and ratios | |||
Earnings per share attributable to equity holders of the parent | |||
Basic earnings per share, EUR | |||
Continuing operations | 0.12 | 0.75 | 0.29 |
Profit for the year | 0.12 | 0.76 | 0.29 |
Diluted earnings per share, EUR | |||
Continuing operations | 0.12 | 0.74 | 0.29 |
Profit for the year | 0.12 | 0.75 | 0.29 |
Proposed dividend per share, EUR(3) | 0.13 | 0.12 | 0.08 |
Return on capital employed %(2) | 6.7% | 9.5% | 10.1% |
Return on shareholders’ equity %(2) | 3.2% | 22.0% | 10.9% |
Equity ratio %(2) | 51.8% | 49.9% | 43.6% |
Net debt to equity (gearing) %(2) | (21.0)% | (22.2)% | (26.4)% |
Cash and cash equivalents | 6 234 | 5 467 | 6 691 |
Total cash and interest-bearing financial investments(2) | 8 514 | 9 244 | 9 268 |
Net cash and interest-bearing financial investments(2) | 4 323 | 4 767 | 4 615 |
Net cash flows from operating activities | 1 317 | 1 474 | 2 625 |
Free cash flow(2)(4) | 665 | 873 | 2 065 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 73 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 74 | |||||||
2023 | 2022 | |||||
EURm | % of net sales | EURm | % of net sales | Year-on-year change % | ||
Net sales | 22 258 | 100.0 | 24 911 | 100.0 | (11) | |
Cost of sales | (13 571) | (61.0) | (14 689) | (59.0) | (8) | |
Gross profit | 8 687 | 39.0 | 10 222 | 41.0 | (15) | |
Research and development expenses | (4 327) | (19.4) | (4 550) | (18.3) | (5) | |
Selling, general and administrative expenses | (2 929) | (13.2) | (3 013) | (12.1) | (3) | |
Other operating income and expenses | 257 | 1.2 | (341) | (1.4) | (175) | |
Operating profit | 1 688 | 7.6 | 2 318 | 9.3 | (27) | |
Share of results of associated companies and joint ventures | (39) | (0.2) | (26) | (0.1) | 50 | |
Financial income and expenses | (150) | (0.7) | (108) | (0.4) | 39 | |
Profit before tax | 1 499 | 6.7 | 2 184 | 8.8 | (31) | |
Income tax (expense)/benefit | (825) | (3.7) | 2 026 | 8.1 | (141) | |
Profit for the year from continuing operations | 674 | 3.0 | 4 210 | 16.9 | (84) | |
Attributable to: | ||||||
Equity holders of the parent | 660 | 3.0 | 4 201 | 16.9 | (84) | |
Non-controlling interests | 14 | 0.1 | 9 | — | 56 |
EURm | 2023 | 2022 | Year-on-year change % |
Asia Pacific | 2 291 | 2 648 | (13) |
Europe(1) | 5 873 | 6 662 | (12) |
Greater China | 1 303 | 1 581 | (18) |
India | 2 842 | 1 290 | 120 |
Latin America | 1 046 | 1 223 | (14) |
Middle East & Africa | 2 050 | 1 969 | 4 |
North America | 5 733 | 8 388 | (32) |
Submarine Networks | 1 120 | 1 150 | (3) |
Total | 22 258 | 24 911 | (11) |
EURm | 2023 | 2022 | Year-on-year change % |
Communications service providers | 17 652 | 19 921 | (11) |
Enterprise | 2 282 | 1 997 | 14 |
Licensees | 1 085 | 1 595 | (32) |
Other(1) | 1 239 | 1 398 | (11) |
Total | 22 258 | 24 911 | (11) |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 75 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 76 | |||||||
2023 | 2022 | |||||
EURm | % of net sales | EURm | % of net sales | Year-on-year change % | ||
Net sales(1) | 8 037 | 100.0 | 9 047 | 100.0 | (11) | |
Cost of sales | (4 987) | (62.1) | (5 739) | (63.4) | (13) | |
Gross profit | 3 050 | 37.9 | 3 308 | 36.6 | (8) | |
Research and development expenses | (1 259) | (15.7) | (1 307) | (14.4) | (4) | |
Selling, general and administrative expenses | (818) | (10.2) | (833) | (9.2) | (2) | |
Other operating income and expenses | 81 | 1.0 | (66) | (0.7) | (223) | |
Operating profit | 1 054 | 13.1 | 1 102 | 12.2 | (4) |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 77 | |||||||
2023 | 2022 | |||||
EURm | % of net sales | EURm | % of net sales | Year-on-year change % | ||
Net sales | 9 797 | 100.0 | 10 671 | 100.0 | (8) | |
Cost of sales | (6 364) | (65.0) | (6 575) | (61.6) | (3) | |
Gross profit | 3 433 | 35.0 | 4 096 | 38.4 | (16) | |
Research and development expenses | (2 010) | (20.5) | (2 234) | (20.9) | (10) | |
Selling, general and administrative expenses | (822) | (8.4) | (865) | (8.1) | (5) | |
Other operating income and expenses | 122 | 1.2 | (57) | (0.5) | (315) | |
Operating profit | 723 | 7.4 | 940 | 8.8 | (23) |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 78 | |||||||
2023 | 2022 | |||||
EURm | % of net sales | EURm | % of net sales | Year-on-year change % | ||
Net sales | 3 220 | 100.0 | 3 351 | 100.0 | (4) | |
Cost of sales | (1 944) | (60.4) | (2 011) | (60.0) | (3) | |
Gross profit | 1 276 | 39.6 | 1 340 | 40.0 | (5) | |
Research and development expenses | (577) | (17.9) | (577) | (17.2) | — | |
Selling, general and administrative expenses | (494) | (15.3) | (544) | (16.2) | (9) | |
Other operating income and expenses | 50 | 1.6 | (42) | (1.3) | (219) | |
Operating profit | 255 | 7.9 | 177 | 5.3 | 44 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 79 | |||||||
2023 | 2022 | |||||
EURm | % of net sales | EURm | % of net sales | Year-on-year change % | ||
Net sales | 1 085 | 100.0 | 1 595 | 100.0 | (32) | |
Cost of sales | — | — | (5) | (0.3) | (100) | |
Gross profit | 1 085 | 100.0 | 1 590 | 99.7 | (32) | |
Research and development expenses | (224) | (20.6) | (214) | (13.4) | 5 | |
Selling, general and administrative expenses | (140) | (12.9) | (136) | (8.5) | 3 | |
Other operating income and expenses | 13 | 1.2 | (32) | (2.0) | (141) | |
Operating profit | 734 | 67.6 | 1 208 | 75.7 | (39) |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 80 | |||||||
2023 | 2022 | |||||
EURm | % of net sales | EURm | % of net sales | Year-on-year change % | ||
Net sales | 130 | 100.0 | 295 | 100.0 | (56) | |
Cost of sales | (136) | (104.6) | (307) | (104.1) | (56) | |
Gross profit | (6) | (4.6) | (12) | (4.1) | (50) | |
Research and development expenses | (120) | (92.3) | (117) | (39.7) | 3 | |
Selling, general and administrative expenses | (216) | (166.2) | (226) | (76.6) | (4) | |
Other operating income and expenses | (49) | (37.7) | 37 | 12.5 | (232) | |
Operating loss | (391) | (300.8) | (318) | (107.8) | 23 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 81 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 82 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 83 | |||||||
2023 | 2022 | ||||
Currency | Net sales | Total costs | Net sales | Total costs | |
EUR | ~25% | ~30% | ~25% | ~25% | |
USD | ~50% | ~45% | ~50% | ~50% | |
CNY | ~5% | ~5% | ~5% | ~5% | |
INR | ~5% | ~5% | ~0% | ~5% | |
Other | ~15% | ~15% | ~20% | ~15% | |
Total | ~100% | ~100% | ~100% | ~100% |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 84 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 85 | |||||||
5 ESG pillars | |||||||||
Environment | Industrial digitalization | Security and privacy | |||||||
Be the leader in energy efficiency and circular practices | We provide connectivity and digital solutions that sustainably transform physical industries | Security and privacy become a cornerstone of our reputation and product proposition | |||||||
Bridging the digital divide | Responsible business | ||||||||
We are a bridge for digital inclusion through our connectivity and digital skill building solutions | Take a proactive and values-driven role in driving responsible business practices internally and in our value chain | ||||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 86 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 87 | |||||||
Promote inclusive and sustainable economic growth, employment and decent work | Build resilient infrastructure, promote sustainable industrialization and foster innovation | Take urgent action to combat climate change and its impacts | ||
In 2023, Nokia deployed the Rural Connect Solution in Middle East and Africa to connect the unconnected and bridge the coverage gap in remote areas of sub-Saharan Africa. The solution takes a new approach to evolving radio access network sites with a focus on reducing energy consumption. It incorporates baseband units with AirScale power rectifiers and long-lasting lithium batteries in a compact, portable package that can be installed almost anywhere. Nokia is collaborating with UNICEF to bridge the digital divide by helping to improve digital education and training in schools in select parts of Senegal, West Africa. The principal beneficiaries are teachers, as well as middle school students in underserved areas. The scope of work includes specific sessions on digital skills, as well as upgrading equipment and connectivity. | In 2023, Nokia partnered with DXC Technology, to launch DXC Signal Private LTE and 5G, a managed secure private wireless network and digitalization platform solution that helps industrial enterprises digitally transform their operations, especially in key market segments including manufacturing, energy, healthcare, logistics, transportation, and education. During the year we also announced that we will work with US energy provider Xcel Energy to help modernize grid operations. The project will include the deployment of Nokia private LTE network technology, helping support secure, reliable data connectivity and new levels of automation. The network technologies will back a growing mix of renewable power sources for Xcel Energy and optimize the delivery of electricity to its millions of customers. | In 2023, Nokia announced a new update in its optics portfolio with the sixth- generation super-coherent photonic service engine, PSE-6s, which can reduce network power consumption in optical transport by up to 60% per bit. We also announced Habrok massive MIMO radios, which offer improved energy efficiency by using up to 30% less energy through a combination of software, hardware and services. During the year we also communicated that we helped Vietnamese communications service provider MobiFone achieve overall energy savings of almost 14% in the first trial of our new Digital Design service. The service analyzes each individual cell in the network and recommends the most appropriate radio link power balance to reduce transmit power. Nokia joined with Orange under the Switch to Circular Economy Value Chains initiative, run by UNIDO (United Nations Industrial Development Organization). The project aims to support corporates in accelerating their circularity efforts, including with their partners in developing countries. Nokia will work closely with Orange to further develop circular approaches in network equipment, including setting up a new refurbishment and repair center in Egypt, which will extend the lifetime of Nokia products. |
Strategic focus area | Target year | Base year | Target | 2023 results | Status |
Environment | |||||
Climate | 2030 | 2019 | Our science-based target (SBT(1)): Reduce our greenhouse gas (GHG) emissions across our value chain (Scope 1, 2 and 3) by 50% between 2019 and 2030, and reach net zero by 2050. | Emissions covered by our SBT were 34 319 800 tons CO2e,(2) which is a 9% decrease from 2022. Despite this decrease, our current SBT emissions are now at the same level as the 2019 baseline year. This means that the 2030 SBT is still not on track with a linear reduction trajectory. While we continue to accelerate innovations in product energy efficiency and supplier collaboration, the availability and take-up of renewable energy by Nokia's customers must rapidly increase to support the achievement of the interim target. | Not on track |
2030 | 2019 | Our final assembly suppliers reach zero emissions by 2030. | Our final assembly suppliers’ emissions were 38 500 tons CO2e, which is a 49% reduction from 2019. | On track | |
2030 | 2019 | Our suppliers reduce GHG emissions by 50% by 2030.(3) | Our suppliers’ emissions were 540 500 tons CO2e, which is a 82% reduction from 2019. However, as this includes emissions data from hundreds of suppliers and the quality of allocated emissions data has been of concern, we are conscious that some of the reductions may be due to the quality of the data reported. | On track | |
2030 | 2019 | Our logistics’ GHG emissions reduced by 73% by 2030. | Our logistics emissions were 140 900 tons CO2e, which is a 54% decrease from 2019. | On track | |
2023 | N/A | Reach 75% renewable electricity in our own facilities. | Reached 75% renewable electricity in our own facilities. | Achieved | |
2023 | 2019 | Reach 65% reduction of our facilities' GHG emissions compared to 2019. | Reached 69% reduction of our facilities’ GHG emissions. | Achieved | |
Circularity | 2030 | 2019 | 95% circularity rate for waste from our offices, labs, manufacturing, installation and product takeback by 2030. | We have recognized areas where a high circularity rate has already been achieved and also areas requiring further action. There are still data gaps to be closed but data accuracy has increased. Annual waste circularity outcome for 2023 was 86%. | On track |
Bridging the digital divide | |||||
Connecting the unconnected and under- served | 2030 | 2021 | Helping our customers to connect the next 2 billion measured by number of subscriptions in Nokia radio customers’ networks by 2030. | In line with Nokia’s long term goal, we work with our customers to provide broadband based digital services on more subscriptions. The number of mobile broadband subscriptions in Nokia radio customers’ networks has increased from 2022 to the end of 2023 by 372 million (2022-2023: 772 million)(4). | On track |
2025 | 2021 | Harness Nokia technology, capabilities and funds to improve the lives of 1 500 000 through social digitalization projects, digital skills building, and connecting the unconnected or underserved by 2025(5). | We reached 130 832 reported direct beneficiaries(6) through social digitalization projects, building digital skills, connecting the unconnected or underserved and improving inclusion, equity and diversity. The current total reported direct beneficiaries for 2022 and 2023 were 691 534. | On track |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 88 | |||||||
Strategic focus area | Target year | Base year | Target | 2023 results | Status |
Security and privacy | |||||
Security and privacy | 2023 | N/A | 95% mandatory training completion related to privacy. | In 2023, the mandatory training completion rate was 98%. | Achieved |
Responsible Business | |||||
Health & safety | 2030 | 2016 | 100% of suppliers delivering high-risk activity to meet “H&S preferred supplier” status (score 4 or more out of 5) in our Health & Safety Maturity Assessment. | 18% of relevant suppliers met H&S “Preferred” supplier status. To reach the 2030 target, Nokia continues to work with our supplier base, engaging and promoting the supplier safety competences, offering safety training and setting supplier workshops in order to improve supplier Health and Safety awareness and capability. | On track |
2023 | N/A | Zero critical or fatal incidents for employees and suppliers. | In 2023, there were zero work-related fatal incidents involving employees. However, we regret three work-related fatal incidents resulting in the death of one contractor/ subcontractor and two third-parties.(7) | Not achieved | |
Inclusion & diversity | 2023 | N/A | Reach a minimum of 27% female hires in global external recruits. | 28% of external recruits were women. We achieved the 2023 target via increased marketing, communication and talent attraction activities to make Nokia’s employer brand stand out for diversity-friendly employment policies and attract diverse talent. | Reached |
Ethics & compliance | 2030 | 2016 | Maintain 85% favorability of employee/line manager engagement on ethics and compliance. | In 2023, 85% of employees said that their line manager talked to the team about the importance of ethics and compliance. | Achieved |
2023 | N/A | Ethical Business Training completed by 95% of employees. | 98% of employees completed Ethical Business Training. | Achieved | |
Responsible sourcing | 2025 | N/A | 98% 3TG traceability and conflict-free status to smelter level in our supply chain as well as conflict-free status of the smelters. Extended due diligence and conflict-free status of cobalt, mica and two additional minerals. | As of 2023, we have achieved 81% traceability to the smelter level in our supply chain as well as conflict-free status of the smelters. We have also extended and conducted due diligence for cobalt and mica and mapped the supply chains for additional minerals. For those due- diligence will follow in the next years. | On track |
2025 | 2020 | 80% of suppliers achieve satisfactory sustainability score (based on aggregated weighted share) from supplier performance evaluation (based on Corporate Responsibility onsite audit programs, EcoVadis, CDP, Conflict minerals). | 80% of suppliers, on average, received a satisfactory sustainability score in our assessment programs. | On track |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 89 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 90 | |||||||
Nokia Board of Directors | ■Approves ESG strategy and evaluates ESG practices, related risks and target setting as well as their implementation and effectiveness. ■Specific sustainability topics are reviewed by Board Committees based on their responsibilities, including ESG reporting, materiality assessment, ethics and compliance, cybersecurity, privacy, culture, human capital management and embedding sustainability in our technologies. | ||
Group Leadership Team | ■Reviews and approves implementation of and changes to sustainability-related policies, management and operational frameworks, strategy, targets and performance, annual sustainability report and links to rewarding. ■Conducts sustainability review and provides feedback a minimum two times per year and as topic-specific areas require ■CEO, CFO and business group presidents review additional sustainability topics a minimum of two times per year as part of Nokia business reviews. |
Sustainability Council ■Steers the alignment of sustainability strategy, priorities, and the implementation of sustainability activities across Nokia ■Contributes to the sustainability strategy and materiality assessment, and reviews sustainability targets and performance ■Provides additional insight to sustainability-related risks and opportunities | Donations and Sponsorships Committee ■Sets principles for allocation of corporate donations and investments for universities and communities ■Approves funds for donation allocation and reviews major sponsorships ■Assesses the impact of all donation programs | Inclusion and Diversity Steering Committee ■Reviews annual Inclusion and Diversity (I&D) plans ■Sets Nokia-level I&D ambitions and measures impact and targets ■Evaluates business group-level I&D actions and provides feedback to business groups | Human Rights Due Diligence Council ■Governs high-level alignment on Nokia’s Human Rights Policy and implementing procedures ■Steers decisions on Nokia businesses from a human rights point of view. ■Ensures alignment between all business groups and functions and that appropriate mitigations are put in place | ||||
Members Senior leaders from units representing all business groups, Customer Experience, Corporate Affairs, People, Finance, Strategy and Technology and Legal and Compliance. Convened ten times in 2023. | Members Chief Financial Officer, Chief Corporate Affairs Officer, Chief People Officer, VP Technology Leadership, Chief Compliance Officer, Head of Customer Experience Finance. Convened once in 2023. | Members Chief Legal Officer, Head of Inclusion & Diversity, other senior leaders from business groups, Human Resources, ESG and legal, and representatives from employee resource groups. Did not convene in 2023(1). | Members Chief Legal Officer, Chief Corporate Affairs Officer, Chief Compliance Officer, VP Sustainability, VP Technology Leadership, other senior leaders per need. Head of Human Rights, and Legal Counsel. Convened twice in 2023. | ||||
ESG function The corporate ESG function drives the implementation of the ESG strategy and actions needed to achieve targets at the operational level. Subject matter experts contribute fact-based input to the different functions and business groups. Ensures corporate sustainability reporting is in line with requirements and regulations. | Ethics and Compliance function Supports employees with training and guidance, fostering ethical decision-making and choices that are consistent with our values, policies, and laws. Promotes an open reporting culture and oversees robust and impartial concern reporting, investigation and remediation processes. | ||||||
(1) Due to reorganization the Inclusion and Diversity Steering Committee did not meet during 2023 and the Sustainability governance model will be reviewed and updated in 2024. |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 91 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 92 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 93 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 94 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 95 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 96 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 97 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 98 | |||||||
Our Code of Conduct and the 14 main policy areas | |||||||||
We do business the right way ■Conflict of interest ■Dealing with government officials ■Fair competition ■Improper payments (anti-corruption) ■Trade compliance ■Working with third parties | We respect our people and community ■Environment ■Fair employment ■Health, safety & labor conditions ■Human rights ■Privacy | We safeguard our assets ■Controllership ■Intellectual property & confidential information ■Insider trading | |||||||
Four defining principles | ||||||||||||
We follow the laws of the countries where we do business and adhere to Nokia’s policies and procedures | We personally set the example for each other and our stakeholders by being honest and fair | We promote a culture of integrity through mutual respect, trust in each other and high standards of ethics in all our business dealings | We hold each other accountable to the Code of Conduct and if we are aware of potential violations, we promptly report them | |||||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 99 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 100 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 101 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 102 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 103 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 104 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 105 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 106 | |||||||
31 December | 2023 | 2022 | 2021 | 2020 | 2019 |
Share capital, EURm | 246 | 246 | 246 | 246 | 246 |
Shares, (000s) | 5 613 497 | 5 632 298 | 5 675 461 | 5 653 886 | 5 640 536 |
Shares held by the Group, (000s) | 87 896 | 45 282 | 40 468 | 36 390 | 34 955 |
Number of shares excluding shares held by the Group, (000s) | 5 525 601 | 5 587 016 | 5 634 993 | 5 617 496 | 5 605 581 |
Average number of shares excluding shares held by the Group during the year | |||||
Basic, (000s)(1) | 5 549 468 | 5 614 182 | 5 630 025 | 5 612 418 | 5 599 912 |
Diluted, (000s)(1) | 5 585 923 | 5 670 020 | 5 684 235 | 5 612 418 | 5 626 375 |
Number of registered shareholders(2) | 247 893 | 238 359 | 233 844 | 246 886 | 248 526 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 107 | |||||||
For the year ended 31 December, Continuing operations | 2023 | 2022 | 2021 | 2020 | 2019 |
Earnings per share, basic, EUR | 0.12 | 0.75 | 0.29 | (0.45) | 0.00 |
Earnings per share, diluted, EUR | 0.12 | 0.74 | 0.29 | (0.45) | 0.00 |
P/E ratio | 25.42 | 5.77 | 19.22 | neg. | — |
Proposed dividend per share, EUR(1) | 0.13 | 0.12 | 0.08 | 0.00 | 0.00 |
Total dividends, EURm(1)(2) | 730 | 676 | 449 | — | — |
Payout ratio(1) | 1.08 | 0.16 | 0.28 | — | — |
Dividend yield %(1) | 4.26 | 2.77 | 1.44 | — | — |
31 December | 2023 | 2022 | 2021 | 2020 | 2019 |
Shareholders’ equity per share, EUR | 3.72 | 3.82 | 3.08 | 2.22 | 2.73 |
Share price(3) | 3.05 | 4.33 | 5.57 | 3.15 | 3.30 |
Market capitalization, EURm | 16 853 | 24 192 | 31 409 | 17 701 | 18 476 |
For the year ended 31 December | 2023 | 2022 | 2021 | 2020 | 2019 |
Number of shares traded during the year (000s)(1) | 7 754 279 | 10 294 615 | 16 560 334 | 13 903 762 | 11 003 630 |
Average number of shares excluding shares held by the Group during the year (000s) | 5 549 468 | 5 614 182 | 5 630 025 | 5 612 418 | 5 599 912 |
Share turnover % | 140 | 183 | 294 | 248 | 196 |
EUR | High | Low | Value |
2023 Full year High/Low | 4.70 | 2.70 | |
2023 Full year Average (Volume-weighted) | 3.73 | ||
Year-end value 31 December 2023 | 3.05 | ||
Year-end value 31 December 2022 | 4.33 | ||
Change from 31 December 2022 to 31 December 2023 | (29.6)% |
USD | High | Low | Value |
2023 Full year High/Low | 5.04 | 2.94 | |
2023 Full year Average (Volume-weighted) | 4.05 | ||
Year-end value 31 December 2023 | 3.42 | ||
Year-end value 31 December 2022 | 4.64 | ||
Change from 31 December 2022 to 31 December 2023 | (26.3)% |
EUR | High | Low | Value |
2023 Full year High/Low | 4.70 | 2.70 | |
2023 Full year Average (Volume-weighted) | 3.76 | ||
Year-end value 31 December 2023 | 3.06 | ||
Year-end value 31 December 2022 | 4.34 | ||
Change from 31 December 2022 to 31 December 2023 | (29.5)% |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 108 | |||||||
Period | Total number of shares purchased | Average price paid per share, EUR | Total number of shares purchased as part of publicly announced plans or programs | Maximum value of shares that may yet be purchased under the plans or programs, EUR |
January | 6 156 200 | 4.44 | 6 156 200 | 272 653 299 |
February | 5 991 500 | 4.40 | 5 991 500 | 246 290 179 |
March | 6 871 300 | 4.39 | 6 871 300 | 216 111 864 |
April | 5 556 000 | 4.19 | 5 556 000 | 192 858 651 |
May | 7 845 100 | 3.77 | 7 845 100 | 163 286 436 |
June | 7 725 400 | 3.83 | 7 725 400 | 133 733 303 |
July | 8 004 933 | 3.69 | 8 004 933 | 104 229 737 |
August | 9 117 690 | 3.55 | 9 117 690 | 71 835 889 |
September | 8 030 700 | 3.68 | 8 030 700 | 42 257 048 |
October | 9 510 000 | 3.26 | 9 510 000 | 11 213 435 |
November | 3 492 188 | 3.21 | 3 492 188 | — |
December | — | — | — | — |
Total | 78 301 011 | 3.83 | 78 301 011 | — |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 109 | |||||||
Shareholder | Total number of shares 000s | % of all shares | % of all voting rights |
Solidium Oy | 325 000 | 5.79 | 5.79 |
Keskinäinen Työeläkevakuutusyhtiö Varma | 80 236 | 1.43 | 1.43 |
Keskinäinen Eläkevakuutusyhtiö Ilmarinen | 75 227 | 1.34 | 1.34 |
Keskinäinen Työeläkevakuutusyhtiö Elo | 46 066 | 0.82 | 0.82 |
Valtion Eläkerahasto | 37 000 | 0.66 | 0.66 |
Oy Lival Ab | 17 310 | 0.31 | 0.31 |
Svenska Litteratursällskapet i Finland r.f. | 15 217 | 0.27 | 0.27 |
OP Finland Fund | 14 833 | 0.26 | 0.26 |
Nordea Bank Abp | 14 047 | 0.25 | 0.25 |
Sijoitusrahasto Seligson & Co | 13 639 | 0.24 | 0.24 |
By number of shares owned | Number of shareholders | % of shareholders | Total number of shares | % of all shares |
1–100 | 64 068 | 25.85 | 3 099 887 | 0.06 |
101–1 000 | 113 516 | 45.79 | 50 199 617 | 0.89 |
1 001–10 000 | 61 876 | 24.96 | 193 112 400 | 3.44 |
10 001–100 000 | 7 916 | 3.19 | 195 350 157 | 3.48 |
100 001–500 000 | 408 | 0.17 | 79 398 334 | 1.41 |
500 001–1 000 000 | 37 | 0.02 | 25 598 078 | 0.46 |
1 000 001–5 000 000 | 44 | 0.02 | 99 933 974 | 1.78 |
Over 5 000 000 | 28 | 0.01 | 4 966 804 118 | 88.48 |
Total | 247 893 | 100 | 5 613 496 565 | 100 |
By nationality | % of shares |
Non-Finnish shareholders | 74.45 |
Finnish shareholders | 25.55 |
Total | 100.00 |
By shareholder category (Finnish shareholders) | % of shares |
Corporations | 3.37 |
Households | 7.79 |
Financial and insurance institutions | 2.80 |
Non-profit organizations | 1.23 |
Governmental bodies (incl. pension insurance companies) | 10.36 |
Total | 25.55 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 110 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 111 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 112 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 113 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 114 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 115 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 116 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 117 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 118 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 119 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 120 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 121 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 122 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 123 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 124 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 125 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 126 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 127 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 128 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 129 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 130 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 131 | |||||||
Service | Fees, USD |
Issuance of ADSs | Up to 5 cents per ADS(1) |
Cancellation of ADSs | Up to 5 cents per ADS(1) |
Distribution of cash dividends or other cash distributions | Up to 2 cents per ADS |
Distribution of ADSs pursuant to (i) stock dividends, free stock distributions or (ii) exercises of rights to purchase additional ADSs | Up to 5 cents per ADS |
Distribution of securities other than ADSs or rights to purchase additional ADSs | Up to 5 cents per ADS(1) |
ADS transfer fee | 1.50 cents per transfer(1) |
Category | Payment, USD |
Settlement infrastructure fees (including the Depositary Trust Company fees) | 1 047 044.65 |
Proxy process expenses (including printing, postage and distribution) | 1 853 812.02 |
Legal fees | — |
NYSE listing fees | 500 000.00 |
Investor relations expenses | 9 095.92 |
Total | 3 409 952.59 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 132 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 133 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 134 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 135 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 136 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 137 | |||||||
EURm | 2023 | 2022 | 2021 |
Profit before tax | 1 499 | 2 184 | 1 926 |
Interest expense on interest-bearing liabilities | 201 | 103 | 113 |
Total | 1 700 | 2 287 | 2 039 |
Average capital and reserves attributable to equity holders of the parent(1) | 20 935 | 19 347 | 14 913 |
Average non-controlling interests(1) | 92 | 98 | 91 |
Average interest-bearing liabilities(1) | 4 334 | 4 565 | 5 115 |
Total capital employed | 25 361 | 24 010 | 20 119 |
Return on capital employed % | 6.7% | 9.5% | 10.1% |
EURm | 2023 | 2022 | 2021 |
Profit/(loss) for the year attributable to equity holders of the parent | 665 | 4 250 | 1 623 |
Average capital and reserves attributable to equity holders of the parent(1) | 20 935 | 19 347 | 14 913 |
Return on shareholders’ equity % | 3.2% | 22.0% | 10.9% |
EURm | 2023 | 2022 | 2021 |
Total capital and reserves attributable to equity holders of the parent | 20 537 | 21 333 | 17 360 |
Non-controlling interests | 91 | 93 | 102 |
Shareholders’ equity | 20 628 | 21 426 | 17 462 |
Total assets | 39 860 | 42 943 | 40 049 |
Equity ratio % | 51.8% | 49.9% | 43.6% |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 138 | |||||||
EURm | 2023 | 2022 | 2021 |
Cash and cash equivalents | 6 234 | 5 467 | 6 691 |
Current interest-bearing financial investments | 1 565 | 3 080 | 2 577 |
Non-current interest-bearing financial investments | 715 | 697 | — |
Total cash and interest-bearing financial investments | 8 514 | 9 244 | 9 268 |
EURm | 2023 | 2022 | 2021 |
Total cash and interest-bearing financial investments | |||
Cash and cash equivalents | 6 234 | 5 467 | 6 691 |
Current interest-bearing financial investments | 1 565 | 3 080 | 2 577 |
Non-current interest-bearing financial investments | 715 | 697 | — |
Interest-bearing liabilities | |||
Long-term interest-bearing liabilities | (3 637) | (4 249) | (4 537) |
Short-term interest-bearing liabilities | (554) | (228) | (116) |
Net cash and interest-bearing financial investments | 4 323 | 4 767 | 4 615 |
EURm | 2023 | 2022 | 2021 |
Interest-bearing liabilities | |||
Long-term interest-bearing liabilities | 3 637 | 4 249 | 4 537 |
Short-term interest-bearing liabilities | 554 | 228 | 116 |
Total cash and interest-bearing financial investments | |||
Cash and cash equivalents | (6 234) | (5 467) | (6 691) |
Current interest-bearing financial investments | (1 565) | (3 080) | (2 577) |
Non-current interest-bearing financial investments | (715) | (697) | — |
Net debt | (4 323) | (4 767) | (4 615) |
Total capital and reserves attributable to equity holders of the parent | 20 537 | 21 333 | 17 360 |
Non-controlling interests | 91 | 93 | 102 |
Shareholders’ equity | 20 628 | 21 426 | 17 462 |
Net debt to equity (gearing) % | (21.0)% | (22.2)% | (26.4)% |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 139 | |||||||
EURm | 2023 | 2022 | 2021 |
Net cash flows from operating activities | 1 317 | 1 474 | 2 625 |
Purchase of property, plant and equipment and intangible assets (capital expenditures) | (652) | (601) | (560) |
Free cash flow | 665 | 873 | 2 065 |
EURm | 2023 | 2022 | 2021 |
Purchase of property, plant and equipment and intangible assets | (652) | (601) | (560) |
Capital expenditure | (652) | (601) | (560) |
EURm | 2023 | 2022 | 2021 |
Operating profit | 1 688 | 2 318 | 2 158 |
Restructuring and associated charges | 356 | 177 | 263 |
Amortization of acquired intangible assets | 352 | 411 | 391 |
Costs associated with country exit | (49) | 98 | — |
Impairment and write-off of assets, net of reversals | 25 | 97 | 45 |
Settlement of legal disputes | — | — | (80) |
Gain on sale of fixed assets | — | — | (53) |
Other | 3 | 8 | 51 |
Comparable operating profit | 2 375 | 3 109 | 2 775 |
EURm | 2023 | 2022 | 2021 |
Comparable operating profit | 2 375 | 3 109 | 2 775 |
Net sales | 22 258 | 24 911 | 22 202 |
Comparable operating margin % | 10.7% | 12.5% | 12.5% |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 140 | |||||||
Consolidated statement of cash flows | |
1.3. Use of estimates and critical accounting judgments | |
Section 2: Results for the year | |
Section 3: Compensation and benefits | |
Section 4: Operating assets and liabilities | |
Section 5: Capital and financial instruments | |
Section 6: Other information | |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 141 | |||||||
EURm | Note | 2023 | 2022 | 2021 |
Net sales | 2.1, 2.2 | |||
Cost of sales | 2.3 | ( | ( | ( |
Gross profit | ||||
Research and development expenses | 2.3 | ( | ( | ( |
Selling, general and administrative expenses | 2.3 | ( | ( | ( |
Other operating income | 2.3 | |||
Other operating expenses | 2.3 | ( | ( | |
Operating profit | ||||
Share of results of associates and joint ventures | 6.4 | ( | ( | |
Financial income(1) | 2.4 | |||
Financial expenses(1) | 2.4 | ( | ( | ( |
Profit before tax | ||||
Income tax (expense)/benefit | 2.5 | ( | ( | |
Profit from continuing operations | ||||
Profit/(loss) from discontinued operations | ( | |||
Profit for the year | ||||
Attributable to: | ||||
Equity holders of the parent | ||||
Non-controlling interests | ||||
Earnings per share attributable to equity holders of the parent | 2.6 | EUR | EUR | EUR |
Basic | ||||
Profit from continuing operations | ||||
Profit for the year | ||||
Diluted | ||||
Profit from continuing operations | ||||
Profit for the year |
(1)In 2023, Nokia changed the presentation of net interest income on defined benefit plans within financial income and expenses. The comparative amounts for 2022 and 2021 have been recast accordingly. Refer to Note 2.4. Financial income and expenses for more information. |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 142 | |||||||
EURm | Note | 2023 | 2022 | 2021 |
Profit for the year | ||||
Items that will not be reclassified to profit or loss | ||||
Remeasurements of defined benefit plans | ( | ( | ||
Income tax related to items that will not be reclassified to profit or loss | 2.5 | ( | ||
Total of items that will not be reclassified to profit or loss | ( | ( | ||
Items that may be reclassified to profit or loss | ||||
Translation differences | ||||
Exchange differences on translating foreign operations | ( | |||
Transfer to income statement | ( | |||
Net investment hedges | ||||
Net fair value gains/(losses) | ( | ( | ||
Cash flow and other hedges | ||||
Net fair value losses | ( | ( | ( | |
Transfer to income statement | ( | |||
Financial assets at fair value through other comprehensive income | ||||
Net fair value losses | ( | ( | ( | |
Transfer to income statement | ||||
Other decrease, net | ( | ( | ||
Income tax related to items that may be reclassified to profit or loss | 2.5 | ( | ( | |
Total of items that may be reclassified to profit or loss | ( | |||
Other comprehensive (loss)/income, net of tax | ( | |||
Total comprehensive (loss)/income for the year | ( | |||
Attributable to: | ||||
Equity holders of the parent | ( | |||
Non-controlling interests |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 143 | |||||||
EURm | Note | 2023 | 2022 |
ASSETS | |||
Non-current assets | |||
Goodwill | 4.1 | ||
Other intangible assets | 4.1 | ||
Property, plant and equipment | 4.2 | ||
Right-of-use assets | 4.3 | ||
Investments in associated companies and joint ventures | 6.4 | ||
Non-current interest-bearing financial investments | 5.2, 5.4 | ||
Other non-current financial assets | 5.2, 5.4 | ||
Defined benefit pension assets | 3.4 | ||
Deferred tax assets | 2.5 | ||
Other non-current receivables | 4.6 | ||
Total non-current assets | |||
Current assets | |||
Inventories | 4.4 | ||
Trade receivables | 4.5, 5.2, 5.4 | ||
Contract assets | 4.5 | ||
Current income tax assets | 2.5 | ||
Other current receivables | 4.6 | ||
Current interest-bearing financial investments | 5.2, 5.4 | ||
Other current financial and firm commitment assets | 5.2, 5.3, 5.4 | ||
Cash and cash equivalents | 5.2, 5.4 | ||
Total current assets | |||
Assets held for sale | 6.4 | ||
Total assets | |||
EURm | Note | 2023 | 2022 |
SHAREHOLDERS’ EQUITY AND LIABILITIES | |||
Equity | |||
Share capital | |||
Share premium | |||
Treasury shares | ( | ( | |
Translation differences | ( | ||
Fair value and other reserves | |||
Reserve for invested unrestricted equity | |||
Retained earnings | |||
Total shareholders’ equity | |||
Non-controlling interests | |||
Total equity | 5.1 | ||
Non-current liabilities | |||
Long-term interest-bearing liabilities | 5.2, 5.3, 5.4 | ||
Long-term lease liabilities | 5.4 | ||
Defined benefit pension and post-employment liabilities | 3.4 | ||
Deferred tax liabilities | 2.5 | ||
Contract liabilities | 4.5 | ||
Other non-current liabilities | 4.6 | ||
Provisions | 4.7 | ||
Total non-current liabilities | |||
Current liabilities | |||
Short-term interest-bearing liabilities | 5.2, 5.3, 5.4 | ||
Short-term lease liabilities | 5.4 | ||
Other financial and firm commitment liabilities | 5.2, 5.3, 5.4 | ||
Contract liabilities | 4.5 | ||
Current income tax liabilities | 2.5 | ||
Trade payables | 5.2, 5.4 | ||
Other current liabilities | 4.6 | ||
Provisions | 4.7 | ||
Total current liabilities | |||
Total liabilities | |||
Total shareholders’ equity and liabilities |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 144 | |||||||
EURm | Note | 2023 | 2022 | 2021 |
Profit for the year | ||||
Adjustments, total(1) | ( | |||
Change in net working capital(2) | ( | ( | ( | |
Cash flows from operations | ||||
Interest received | ||||
Interest paid | 4.3, 5.2 | ( | ( | ( |
Income taxes paid, net | ( | ( | ( | |
Net cash flows from operating activities | ||||
Purchase of property, plant and equipment and intangible assets | ( | ( | ( | |
Proceeds from sale of property, plant and equipment and intangible assets | ||||
Acquisition of businesses, net of cash acquired | ( | ( | ( | |
Proceeds from disposal of businesses, net of cash disposed | ||||
Purchase of interest-bearing financial investments | ( | ( | ( | |
Proceeds from interest-bearing financial investments | ||||
Purchase of other non-current financial assets | ( | ( | ( | |
Proceeds from other non-current financial assets | ||||
Other | ( | ( | ||
Net cash flows from/(used in) investing activities | ( | ( | ||
Acquisition of treasury shares | 5.1 | ( | ( | |
Proceeds from long-term borrowings | 5.4 | |||
Repayment of long-term borrowings | 5.4 | ( | ( | ( |
(Repayment of)/proceeds from short-term borrowings | 5.4 | ( | ( | |
Payment of principal portion of lease liabilities | 4.3, 5.4 | ( | ( | ( |
Dividends paid | 5.1 | ( | ( | ( |
Net cash flows used in financing activities | ( | ( | ( | |
Translation differences | ( | |||
Net increase/(decrease) in cash and cash equivalents | ( | ( | ||
Cash and cash equivalents at 1 January | ||||
Cash and cash equivalents at 31 December | ||||
The consolidated statement of cash flows combines cash flows from both continuing and discontinued operations. | ||||
The notes are an integral part of these consolidated financial statements. |
(1) Adjustments | |||
EURm | 2023 | 2022 | 2021 |
Depreciation and amortization | |||
Share-based payments | |||
Impairment charges | |||
Restructuring charges | |||
Loss/(gain) from other non-current financial assets | ( | ( | |
Gain on sale of property, plant and equipment | ( | ( | ( |
Financial income and expenses | |||
Income tax expense/(benefit) | ( | ||
Other adjustments, net | |||
Total | ( |
(2) Change in net working capital | |||
EURm | 2023 | 2022 | 2021 |
Decrease/(increase) in receivables | ( | ||
Decrease/(increase) in inventories | ( | ( | |
Decrease in non-interest-bearing liabilities | ( | ( | ( |
Total | ( | ( | ( |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 145 | |||||||
EURm | Note | Share capital | Share premium | Treasury shares | Translation differences | Fair value and other reserves | Reserve for invested unrestricted equity | Retained earnings/ (Accumulated deficit) | Total shareholders’ equity | Non-controlling interests | Total equity |
1 January 2021 | ( | ( | ( | ||||||||
Profit for the year | |||||||||||
Other comprehensive income | 5.1 | ( | |||||||||
Total comprehensive income for the year | |||||||||||
Share-based payments | |||||||||||
Settlement of share-based payments | ( | ( | ( | ||||||||
Dividends | 5.1 | ( | ( | ||||||||
Total transactions with owners | ( | ||||||||||
31 December 2021 | ( | ( | ( | ||||||||
Profit for the year | |||||||||||
Other comprehensive income | 5.1 | ( | ( | ( | |||||||
Total comprehensive income for the year | ( | ||||||||||
Share-based payments | |||||||||||
Settlement of share-based payments | ( | ( | ( | ||||||||
Acquisition of treasury shares(1) | 5.1 | ( | ( | ( | ( | ||||||
Cancellation of treasury shares(1) | 5.1 | ( | |||||||||
Dividends | 5.1 | ( | ( | ( | ( | ||||||
Total transactions with owners | ( | ( | ( | ( | ( | ||||||
31 December 2022 | ( | ||||||||||
Profit for the year | |||||||||||
Other comprehensive loss | 5.1 | ( | ( | ( | ( | ( | ( | ||||
Total comprehensive income for the year | ( | ( | ( | ( | |||||||
Share-based payments | |||||||||||
Settlement of share-based payments | ( | ( | ( | ||||||||
Acquisition of treasury shares(1) | 5.1 | ( | ( | ( | |||||||
Cancellation of treasury shares(1) | 5.1 | ( | |||||||||
Disposal of subsidiaries | ( | ( | |||||||||
Dividends | 5.1 | ( | ( | ( | ( | ||||||
Total transactions with owners | ( | ( | ( | ( | ( | ||||||
31 December 2023 | ( | ( |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 146 | |||||||
Section 1 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 147 | |||||||
Key accounting estimates and judgments | Note |
Judgment related to recognition of deferred tax assets | 2.5. Income taxes |
Estimate of pension and other post-employment benefit obligations | 3.4. Pensions and other post-employment benefits |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 148 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 149 | |||||||
Section 2 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 150 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 151 | |||||||
EURm | 2023 | 2022 | 2021 |
Asia Pacific | |||
Europe | |||
Greater China | |||
India | |||
Latin America | |||
Middle East & Africa | |||
North America | |||
Submarine Networks | |||
Total |
EURm | 2023 | 2022 | 2021 |
Communications service providers | |||
Enterprise | |||
Licensees | |||
Other(1) | |||
Total |
2023 | 2022 | |
Within 1 year | ||
2-3 years | ||
More than 3 years | ||
Total |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 152 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 153 | |||||||
EURm | Network Infrastructure(1) | Mobile Networks | Cloud and Network Services | Nokia Technologies | Group Common and Other | Eliminations and unallocated items(2) | Nokia Group |
2023 | |||||||
Net sales to external customers | |||||||
Net sales to other segments | ( | ( | |||||
Operating profit/(loss) | ( | ( | |||||
Share of results of associated companies and joint ventures | ( | ( | ( | ||||
Financial income and expenses | ( | ||||||
Profit before tax | |||||||
Other segment items | |||||||
Depreciation and amortization | ( | ( | ( | ( | ( | ( | ( |
2022 | |||||||
Net sales to external customers | |||||||
Net sales to other segments | ( | ||||||
Operating profit/(loss) | ( | ( | |||||
Share of results of associated companies and joint ventures | ( | ( | ( | ( | |||
Financial income and expenses | ( | ||||||
Profit before tax | |||||||
Other segment items | |||||||
Depreciation and amortization | ( | ( | ( | ( | ( | ( | ( |
2021 | |||||||
Net sales to external customers | |||||||
Net sales to other segments | ( | ||||||
Operating profit/(loss) | ( | ( | |||||
Share of results of associated companies and joint ventures | ( | ( | |||||
Financial income and expenses | ( | ||||||
Profit before tax | |||||||
Other segment items | |||||||
Depreciation and amortization | ( | ( | ( | ( | ( | ( | ( |
(1)Includes IP Networks net sales of EUR in 2022 and EUR sales of EUR (2)Unallocated items comprise costs related to intangible asset amortization, restructuring-related charges, impairments and certain other items. |
EURm | 2023 | 2022 | 2021 | |
Total segment operating profit | ||||
Restructuring and associated charges | ( | ( | ( | |
Amortization of acquired intangible assets | ( | ( | ( | |
Costs associated with country exit | ( | |||
Impairment and write-off of assets, net of reversals | ( | ( | ( | |
Settlement of legal disputes | ||||
Gain on sale of fixed assets | ||||
Other | ( | ( | ( | |
Operating profit for the Group |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 154 | |||||||
EURm | 2023 | 2022 | 2021 |
Finland | |||
United States | |||
India | |||
France | |||
Great Britain | |||
Other | |||
Total |
EURm | 2023 | 2022 |
Finland | ||
United States | ||
France | ||
Other | ||
Total |
EURm | 2023 | 2022 | 2021 |
Personnel expenses | |||
Cost of material | |||
Project subcontracting and other customer contract expenses | |||
Depreciation and amortization | |||
IT services | |||
Impairment charges | |||
Other | |||
Total operating expenses |
EURm | 2023 | 2022 | 2021 |
Cost of sales | |||
Research and development expenses | |||
Selling, general and administrative expenses | |||
Total restructuring charges |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 155 | |||||||
EURm | 2023 | 2022 | 2021 |
Gain on sale of property, plant and equipment including divested business | |||
Subsidies and government grants | |||
(Losses)/gains from venture funds | ( | ||
Settlements and resolutions of legal disputes | |||
Other | |||
Total |
EURm | 2023 | 2022 | 2021 |
Expected credit losses on trade receivables | ( | ( | |
Impairment of disposal groups | ( | ||
Changes in provisions | ( | ( | |
Foreign exchange gains/(losses) on hedging forecasted sales and purchases | ( | ||
Other | ( | ( | ( |
Total | ( | ( |
EURm | 2023 | 2022 | 2021 |
Interest income on financial investments | |||
Interest income on financing components of other contracts | |||
Net interest income on defined benefit plans(1) | |||
Other financial income(2) | ( | ||
Total |
EURm | 2023 | 2022 | 2021 |
Interest expense on interest-bearing liabilities | ( | ( | ( |
Negative interest on financial investments | ( | ( | ( |
Interest expense on financing components of other contracts(1) | ( | ( | ( |
Interest expense on lease liabilities | ( | ( | ( |
Net fair value (losses)/gains on hedged items under fair value hedge accounting | ( | ||
Net fair value gains/(losses) on hedging instruments under fair value hedge accounting | ( | ( | |
Net foreign exchange (losses)/gains | ( | ( | |
Other financial expenses(2) | ( | ( | ( |
Total | ( | ( | ( |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 156 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 157 | |||||||
EURm | 2023 | 2022 | 2021 |
Current tax expense | ( | ( | ( |
Deferred tax (expense)/benefit | ( | ||
Total | ( | ( |
EURm | 2023 | 2022 | 2021 |
Income tax expense at statutory rate | ( | ( | ( |
Permanent differences | |||
Non-creditable withholding taxes | ( | ( | ( |
Income taxes for prior years(1) | |||
Effect of different tax rates of subsidiaries operating in other jurisdictions | ( | ( | ( |
Effect of deferred tax assets not recognized(2) | ( | ( | ( |
Benefit arising from previously unrecognized deferred tax assets(3) | |||
Net (increase)/decrease in uncertain tax positions | ( | ( | |
Change in income tax rates | |||
Income taxes on undistributed earnings | ( | ( | ( |
Total | ( | ( |
2023 | 2022 | ||||||
Deferred | Deferred | Net | Deferred | Deferred | Net | ||
EURm | tax assets | tax liabilities | balance | tax assets | tax liabilities | balance | |
Tax losses carried forward and unused tax credits | ( | ||||||
Undistributed earnings | ( | ( | |||||
Intangible assets and property, plant and equipment | ( | ( | |||||
Right-of-use assets | ( | ( | |||||
Defined benefit pension assets | ( | ( | |||||
Other non-current assets | ( | ( | |||||
Inventories | ( | ( | |||||
Other current assets | ( | ( | |||||
Lease liabilities | |||||||
Defined benefit pension and other post-employment liabilities | |||||||
Other non-current liabilities | ( | ||||||
Provisions | ( | ( | |||||
Other current liabilities | ( | ( | |||||
Other temporary differences | ( | ( | |||||
Total before netting | ( | ( | |||||
Netting of deferred tax assets and liabilities | ( | — | ( | — | |||
Total after netting | ( | ( |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 158 | |||||||
EURm | 2023 | 2022 | 2021 |
1 January | |||
Recognized in income statement, continuing operations | ( | ||
Recognized in other comprehensive income | ( | ||
Other | ( | ( | |
Translation differences | ( | ||
31 December |
EURm | 2023 | 2022 |
Temporary differences | ||
Tax losses carried forward | ||
Tax credits | ||
Total |
2023 | 2022 | ||||||
EURm | Recognized | Unrecognized | Total | Recognized | Unrecognized | Total | |
Tax losses carried forward | |||||||
Within 10 years | |||||||
Thereafter | |||||||
No expiry | |||||||
Total | |||||||
Tax credits | |||||||
Within 10 years | |||||||
Thereafter | |||||||
No expiry | |||||||
Total |
2023 | 2022 | 2021 | |||||||||
EURm | Gross | Tax | Net | Gross | Tax | Net | Gross | Tax | Net | ||
Remeasurements of defined benefit plans | ( | ( | ( | ( | ( | ||||||
Translation differences | ( | ( | |||||||||
Net investment hedges | ( | ( | ( | ( | ( | ( | |||||
Cash flow and other hedges | ( | ( | ( | ||||||||
Financial assets at fair value through other comprehensive income | ( | ( | |||||||||
Other decrease | ( | ( | ( | ( | |||||||
Total | ( | ( | ( |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 159 | |||||||
Accounting policies Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders of the parent by the weighted average number of shares outstanding during the year. Diluted earnings per share is calculated by adjusting the profit or loss attributable to equity holders of the parent, and the weighted average number of shares outstanding, for the effects of all dilutive potential ordinary shares. Potential ordinary shares are excluded from the calculation of diluted earnings per share when they are determined to be antidilutive. |
EURm | 2023 | 2022 | 2021 |
Profit or loss attributable to equity holders of the parent | |||
Continuing operations | |||
Discontinued operations | ( | ||
Profit for the year | |||
Number of shares (000s) | |||
Weighted average number of shares outstanding | |||
Effect of potentially dilutive shares | |||
Performance shares | |||
Restricted shares and other | |||
Total effect of potentially dilutive shares | |||
Adjusted weighted average number of shares | |||
Earnings per share, EUR | |||
Basic earnings per share | |||
Continuing operations | |||
Discontinued operations | |||
Profit for the year | |||
Diluted earnings per share | |||
Continuing operations | |||
Discontinued operations | |||
Profit for the year |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 160 | |||||||
Section 3 |
EURm | 2023 | 2022 | 2021 |
Salaries and wages(1) | |||
Pensions and other post- employment benefits | |||
Defined contribution plans | |||
Defined benefit plans(2) | |||
Share-based payments | |||
Social security costs | |||
Total |
2023 | 2022 | 2021 | |
Average number of employees |
EURm | 2023 | 2022 | 2021 |
Short-term benefits | |||
Post-employment benefits(1) | |||
Share-based payments | |||
Termination benefits(2) | |||
Total |
EUR | 2023 | 2022 | 2021 |
Base salary | |||
Cash incentive payments | |||
Share-based payment expenses(1) | |||
Pension expenses | |||
Other benefits(2) | |||
Total |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 161 | |||||||
The annual remuneration paid to the members of the Board of Directors, as decided by the Annual General Meetings in the respective years: |
2023 | 2022 | 2021 | |||||||||
Annual fee(1) EUR | Meeting fees(2) EUR | Shares received(3) number | Annual fee(1) EUR | Meeting fees(2) EUR | Shares received(3) number | Annual fee(1) EUR | Meeting fees(2) EUR | Shares received(3) number | |||
Sari Baldauf, Chair (4)(5) | |||||||||||
Søren Skou, Vice Chair(4) | |||||||||||
Timo Ahopelto(5)(6) | |||||||||||
Bruce Brown | |||||||||||
Elizabeth Crain(4)(6) | |||||||||||
Thomas Dannenfeldt(4)(6) | |||||||||||
Lisa Hook(4) | |||||||||||
Jeanette Horan(5)(6) | |||||||||||
Edward Kozel | |||||||||||
Thomas Saueressig(5) | |||||||||||
Carla Smits-Nusteling(6) | |||||||||||
Kari Stadigh | |||||||||||
Kai Öistämö(5) | |||||||||||
Total |
(1)Annual fees consist of Board member fees and Committee chair and member fees. (2)Meeting fees include all meeting fees paid for the term that ended at the Annual General Meeting held on 4 April 2023, and meeting fees accrued and paid in 2023 for the term that began at the same meeting. (3)Approximately (4)Annual fees in 2023 include EUR (5)Annual fees in 2023 include EUR (6)Annual fees in 2023 include EUR |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 162 | |||||||
Plan | Performance shares outstanding at target | Confirmed payout (% of target) | Performance period | Settlement year |
2020 | 2020-2023 | 2023 | ||
2021 | 2021-2023 | 2024 | ||
2022 | 2022-2024 | 2025 | ||
2023 | 2023-2025 | 2026 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 163 | |||||||
Performance shares | Restricted shares | ||||
Number of shares outstanding at target | Weighted average grant date fair value (EUR) | Number of shares outstanding | Weighted average grant date fair value (EUR) | ||
1 January 2021 | |||||
Granted | |||||
Forfeited | ( | ( | |||
Vested(1) | ( | ( | |||
31 December 2021 | |||||
Granted | |||||
Forfeited | ( | ( | |||
Vested(1) | ( | ( | |||
31 December 2022 | |||||
Granted | |||||
Forfeited | ( | ( | |||
Vested(1) | ( | ( | |||
31 December 2023 | |||||
(1)Vested performance shares at target are to be multiplied by the confirmed payout (% of target) to calculate the total number of Nokia shares settled. |
Estimation of grant date fair values | |
Plan | Grant date fair value |
ATSR | Estimated considering the dividend-adjusted Nokia share price at the end of the performance period of the plan and the target payout levels set for the plan. |
RTSR | Estimated considering a combination of the dividend-adjusted Nokia share price compared with benchmark companies’ share prices at the end of the performance period of the plan and the target payout levels set for the plan. |
Restricted Shares | Estimated using the grant date market price of the Nokia share less the present value of dividends expected to be paid during the vesting period. |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 164 | |||||||
EURm | Defined benefit obligation | Fair value of plan assets | Effects of asset ceiling | Net defined benefit balance |
2023 | ||||
United States, Pension | ( | |||
United States, OPEB | ( | ( | ||
Germany | ( | ( | ||
United Kingdom | ( | |||
Other | ( | ( | ||
Total | ( | ( | ||
2022 | ||||
United States, Pension | ( | |||
United States, OPEB | ( | ( | ||
Germany | ( | ( | ||
United Kingdom | ( | |||
Other | ( | ( | ||
Total | ( | ( |
EURm | 2023 | 2022 |
Wholly funded | ||
Partly funded | ||
Unfunded | ||
Total |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 165 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 166 | |||||||
Defined benefit obligation | 2023 | 2022 | |||||||
EURm | United States pension | United States OPEB | Other pension | Total | United States pension | United States OPEB | Other pension | Total | |
1 January | ( | ( | ( | ( | ( | ( | ( | ( | |
Current service cost | ( | ( | ( | ( | ( | ( | |||
Interest expense | ( | ( | ( | ( | ( | ( | ( | ( | |
Past service cost | ( | ( | |||||||
Settlements(1) | |||||||||
Total | ( | ( | ( | ( | ( | ( | ( | ||
Remeasurements: | |||||||||
Gain/(loss) from change in demographic assumptions | ( | ( | ( | ||||||
(Loss)/gain from change in financial assumptions | ( | ( | ( | ( | |||||
Experience (loss)/gain | ( | ( | ( | ( | ( | ( | ( | ||
Total | ( | ( | ( | ||||||
Translation differences | ( | ( | ( | ( | |||||
Contributions from plan participants | ( | ( | ( | ( | ( | ( | |||
Benefits paid | |||||||||
Other | ( | ( | ( | ( | |||||
Total | |||||||||
31 December | ( | ( | ( | ( | ( | ( | ( | ( | |
Weighted average duration of the defined benefit obligation (in years) |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 167 | |||||||
Fair value of plan assets | 2023 | 2022 | |||||||
EURm | United States pension | United States OPEB | Other pension | Total | United States pension | United States OPEB | Other pension | Total | |
1 January | |||||||||
Interest income | |||||||||
Administrative expenses and interest on asset ceiling | ( | ( | ( | ( | ( | ( | |||
Settlements(1) | ( | ( | ( | ( | |||||
Total | ( | ||||||||
Remeasurements: | |||||||||
Return on plan assets, excluding amounts included in interest income | ( | ( | ( | ( | ( | ( | |||
Total | ( | ( | ( | ( | ( | ( | |||
Translation differences | ( | ( | ( | ( | |||||
Contributions: | |||||||||
Employers | |||||||||
Plan participants | |||||||||
Benefits paid | ( | ( | ( | ( | ( | ( | ( | ( | |
Section 420 transfer(2) | ( | ( | |||||||
Other | ( | ( | ( | ( | |||||
Total | ( | ( | ( | ( | ( | ( | ( | ( | |
31 December |
The impact of the asset ceiling limitation | 2023 | 2022 | |||||||
EURm | United States pension | United States OPEB | Other pension | Total | United States pension | United States OPEB | Other pension | Total | |
1 January | ( | ( | ( | ( | |||||
Interest expense | ( | ( | |||||||
Remeasurements: | |||||||||
Change in asset ceiling, excluding amounts included in interest expense | |||||||||
Translation differences | ( | ( | ( | ( | |||||
31 December | ( | ( | ( | ( |
Net balances | 2023 | 2022 | |||||||
EURm | United States pension | United States OPEB | Other pension | Total | United States pension | United States OPEB | Other pension | Total | |
31 December | ( | ( | ( | ( | |||||
Consisting of: | |||||||||
Net pension assets | |||||||||
Net pension liabilities | ( | ( | ( | ( | ( | ( | ( | ( |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 168 | |||||||
EURm | 2023 | 2022 | 2021 |
Current service cost(1) | |||
Past service cost(1) | ( | ( | |
Net interest(2) | ( | ( | ( |
Settlements(1) | ( | ( | |
Total | ( |
EURm | 2023 | 2022 | 2021 |
Return on plan assets, excluding amounts included in interest income | ( | ( | |
Gain/(loss) from change in demographic assumptions | ( | ( | |
(Loss)/gain from change in financial assumptions | ( | ||
Experience (loss)/gain | ( | ( | |
Change in asset ceiling, excluding amounts included in interest expense | |||
Total | ( | ( |
Discount rate | Mortality table | |||
2023 | 2022 | 2023 | ||
United States | Pri-2012 w/MP-2020 Mortality projection scale | |||
Germany | Heubeck 2018G | |||
United Kingdom(1) | CMI 2021 | |||
Total weighted average for all countries |
2023 | 2022 | Change in assumption | Increase in assumption(1) EURm | Decrease in assumption(1) EURm | |
Discount rate for determining present values | ( | ||||
Pension growth rate | ( | ||||
Inflation rate | ( | ||||
Life expectancy | ( |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 169 | |||||||
2023 | 2022 | ||||||||
EURm | Quoted | Unquoted | Total | % | Quoted | Unquoted | Total | % | |
Equity securities | |||||||||
Fixed income securities | |||||||||
Insurance contracts | |||||||||
Real estate | |||||||||
Short-term investments | |||||||||
Private equity and other | |||||||||
Total |
Most short-term investments including cash, equities and fixed-income securities have quoted market prices in active markets. Equity securities represent investments in equity funds and direct investments, which have quoted market prices in an active market. Fixed income securities represent direct investments in government and corporate bonds, as well as investments in bond funds, which have quoted market prices in an active market. Insurance contracts are customary pension insurance contracts structured under domestic law in the respective countries. Real estate investments are investments in commercial properties or real estate funds, which invest in a diverse range of real estate properties. Short-term investments are liquid assets or cash, which are being held for a short period of time, with the primary purpose of controlling the tactical asset allocation. Private equity net asset values (NAVs) are determined by the asset managers based on inputs such as operating results, discounted future cash flows and market-based comparable data. Assets invested in alternative asset classes such as private equity, real estate and absolute return, are measured using latest available valuations provided by the asset managers, reviewed by Nokia, and adjusted for subsequent cash flows. |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 170 | |||||||
US Pension | US OPEB | Other countries | Total | |||||||
EURm | Management | Occupational | Supplemental plans | Formerly union represented | Non-union represented | |||||
2024 | ||||||||||
2025 | ||||||||||
2026 | ||||||||||
2027 | ||||||||||
2028 | ||||||||||
2029-2033 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 171 | |||||||
Section 4 |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 172 | |||||||
EURm | Goodwill | Intangible assets | Total | ||
2023 | |||||
Acquisition cost at 1 January | |||||
Additions | |||||
Disposals, retirements and reclassifications | ( | ( | ( | ||
Translation differences | ( | ( | ( | ||
Acquisition cost at 31 December | |||||
Accumulated amortization and impairment charges at 1 January | ( | ( | ( | ||
Amortization | ( | ( | |||
Impairment charges | ( | ( | |||
Disposals, retirements and reclassifications | |||||
Translation differences | |||||
Accumulated amortization and impairment charges at 31 December | ( | ( | ( | ||
Net book value at 1 January | |||||
Net book value at 31 December | |||||
2022 | |||||
Acquisition cost at 1 January | |||||
Additions | |||||
Disposals, retirements and reclassifications | ( | ( | |||
Translation differences | |||||
Acquisition cost at 31 December | |||||
Accumulated amortization and impairment charges at 1 January | ( | ( | ( | ||
Amortization | ( | ( | |||
Disposals, retirements and reclassifications | |||||
Translation differences | ( | ( | ( | ||
Accumulated amortization and impairment charges at 31 December | ( | ( | ( | ||
Net book value at 1 January | |||||
Net book value at 31 December |
EURm | 2023 | 2022 | |
Customer relationships | |||
Patents and licenses | |||
Technologies and IPR&D | |||
Tradenames and other | |||
Total |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 173 | |||||||
EURm | 2023 | 2022 | |
Network Infrastructure | |||
Mobile Networks | |||
Cloud and Network Services |
Terminal growth rate | Post-tax discount rate | ||||
Key assumption % | 2023 | 2022 | 2023 | 2022 | |
Network Infrastructure | |||||
Mobile Networks | |||||
Cloud and Network Services |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 174 | |||||||
Buildings and constructions | |
Buildings and constructions | |
Light buildings and constructions | |
Vessels | |
Cable-laying vessels | |
Cable-laying accessories | |
Machinery and equipment | |
Production machinery and measuring and test equipment | |
Other machinery and equipment |
EURm | Land, buildings, constructions and vessels | Machinery, equipment and other | Assets under construction | Total | |||
2023 | |||||||
Acquisition cost at 1 January | |||||||
Additions | |||||||
Reclassifications | ( | ||||||
Disposals and retirements | ( | ( | ( | ( | |||
Translation differences | ( | ( | ( | ( | |||
Acquisition cost at 31 December | |||||||
Accumulated depreciation at 1 January | ( | ( | ( | ||||
Depreciation | ( | ( | ( | ||||
Disposals and retirements | |||||||
Translation differences | |||||||
Accumulated depreciation at 31 December | ( | ( | ( | ||||
Net book value at 1 January | |||||||
Net book value at 31 December | |||||||
2022 | |||||||
Acquisition cost at 1 January | |||||||
Additions | |||||||
Reclassifications | ( | ||||||
Disposals and retirements | ( | ( | ( | ( | |||
Translation differences | |||||||
Acquisition cost at 31 December | |||||||
Accumulated depreciation at 1 January | ( | ( | ( | ||||
Depreciation | ( | ( | ( | ||||
Impairment charges | ( | ( | ( | ||||
Disposals and retirements | |||||||
Translation differences | ( | ( | ( | ||||
Accumulated depreciation at 31 December | ( | ( | ( | ||||
Net book value at 1 January | |||||||
Net book value at 31 December |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 175 | |||||||
Buildings | |
Other |
EURm | Buildings | Other | Total |
2023 | |||
Acquisition cost at 1 January | |||
Additions(1) | |||
Retirements | ( | ( | ( |
Translation differences | ( | ( | |
Acquisition cost at 31 December | |||
Accumulated depreciation at 1 January | ( | ( | ( |
Depreciation | ( | ( | ( |
Impairment charges | |||
Retirements | |||
Translation differences | |||
Accumulated depreciation at 31 December | ( | ( | ( |
Net book value at 1 January | |||
Net book value at 31 December | |||
2022 | |||
Acquisition cost at 1 January | |||
Additions(1) | |||
Retirements | ( | ( | ( |
Translation differences | ( | ||
Acquisition cost at 31 December | |||
Accumulated depreciation at 1 January | ( | ( | ( |
Depreciation | ( | ( | ( |
Impairment charges | |||
Retirements | |||
Translation differences | |||
Accumulated depreciation at 31 December | ( | ( | ( |
Net book value at 1 January | |||
Net book value at 31 December | |||
(1) Additions comprise new lease contracts as well as modifications and remeasurements of existing lease contracts. |
EURm | 2023 | 2022 | 2021 |
Depreciation of right-of-use assets | ( | ( | ( |
Interest expense on lease liabilities | ( | ( | ( |
Impairment charges, net of reversals | ( | ||
Total | ( | ( | ( |
EURm | 2023 | 2022 | 2021 |
Payment of principal portion of lease liabilities | ( | ( | ( |
Interest paid on lease liabilities | ( | ( | ( |
Total | ( | ( | ( |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 176 | |||||||
EURm | 2023 | 2022 |
Raw materials and semi-finished goods | ||
Finished goods | ||
Contract work in progress | ||
Total |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 177 | |||||||
Customer-related balances Nokia aims to ensure the highest possible quality in trade receivables and contract assets as well as customer or third-party loan receivables. The Credit Risk Management Standard Operating Procedure, approved by the CFO, lays out the framework for the management of business-related credit risks. The Credit Risk Management Standard Operating Procedure sets out that credit decisions are based on credit evaluation in each business, including credit rating and limits for larger exposures, according to defined principles. Group level limit approvals are required for material credit exposures. Credit risks are monitored in each business and, where appropriate, mitigated on a case-by-case basis with the use of letters of credit, collaterals, sponsor guarantees, credit insurance and sale of selected receivables. |
Aging of trade receivables and other customer-related balances at 31 December | |||||
Past due | |||||
EURm | Current | 1-30 days | 31-180 days | > 180 days | Total |
2023 | |||||
Trade receivables(1) | |||||
Contract assets | |||||
Customer financing-related loan receivables | |||||
Total gross receivables | |||||
Expected credit loss allowance(2)(3) | ( | ( | ( | ( | ( |
Total net receivables | |||||
2022 | |||||
Trade receivables(1) | |||||
Contract assets | |||||
Customer financing-related loan receivables | |||||
Total gross receivables | |||||
Expected credit loss allowance(2)(3) | ( | ( | ( | ( | ( |
Total net receivables | |||||
(1) Nokia’s payment terms are (2) The total expected credit loss allowance includes EUR (3) In 2023, the decrease in the expected credit loss allowance includes EUR EUR |
The reversal of expected credit loss charged to the income statement in 2023 was EUR charged to the income statement was EUR |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 178 | |||||||
Customer | 2023 | 2022 |
Customer 1 | ||
Customer 2 | ||
Customer 3 | ||
Total | ||
Country | 2023 | 2022 |
Country 1(1) | ||
Country 2 | ||
Country 3 | ||
Total |
EURm | 2023 | 2022 |
R&D tax credits | ||
Indirect tax receivables | ||
Other | ||
Total |
EURm | 2023 | 2022 |
VAT and other indirect tax receivables | ||
Prepayments related to contract manufacturing | ||
IT-related prepaid expenses | ||
R&D tax credits and grant receivables | ||
Divestment-related receivables | ||
Other | ||
Total |
EURm | 2023 | 2022 |
Salaries, wages and social charges | ||
Other | ||
Total |
EURm | 2023 | 2022 |
Salaries, wages and social charges | ||
Accrued expenses related to customer projects | ||
Discounts without performance obligations | ||
VAT and other indirect tax payables | ||
Other(1) | ||
Total |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 179 | |||||||
Warranty provision Nokia provides for the estimated liability to repair or replace products under standard warranty at the time revenue is recognized. The provision estimate is based on historical experience of the level of repairs and replacements. Cash outflows related to the warranty provision are generally expected to occur in the next | Project loss provision Nokia provides for onerous contracts based on the lower of the expected cost of fulfilling the contract and the expected cost of terminating the contract. An onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. Project loss provisions relate to contracts with customers and are evaluated at a contract level. The majority of the project loss provision utilization is expected to occur over the next | |
Litigation and environmental provisions Nokia provides for the estimated future settlements related to legal proceedings based on the probable outcome of the claims. Nokia also provides for environmental remediation when Nokia becomes obliged, legally or constructively, to rectify environmental damage relating to soil, groundwater, surface water or sediment contamination. Cash outflows related to the litigation and environmental liabilities are inherently uncertain and generally occur over several periods. For a presentation of legal matters potentially affecting Nokia, refer to Note 6.1. Commitments, contingencies and legal proceedings. | ||
Other provisions Nokia provides for various legal and constructive obligations such as material liability, indirect tax provisions, divestment- related provisions, employee-related provisions other than restructuring provisions and asset retirement obligations. Cash outflows related to other provisions are generally expected to occur over the next | ||
Litigation and | Project | |||||
EURm | Restructuring | Warranty | environmental(2) | losses | Other | Total |
1 January 2023 | ||||||
Charged to income statement | ||||||
Additions | ||||||
Reversals | ( | ( | ( | ( | ||
Total charged to income statement | ||||||
Utilized during year(1) | ( | ( | ( | ( | ( | ( |
Translation differences and other | ( | ( | ( | |||
31 December 2023 | ||||||
Non-current | ||||||
Current |
(1)The utilization of restructuring provision includes items transferred to accrued expenses, of which EUR (2)Environmental provision was EUR |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 180 | |||||||
Section 5 |
Number of shares 000s | 2023 | 2022 | 2021 |
1 January | |||
Settlement of share-based payments | |||
Acquisition of treasury shares | ( | ( | |
31 December |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 181 | |||||||
Changes in other comprehensive income by component of equity |
Fair value and other reserves | |||||
EURm | Translation differences(1) | Pension remeasurements | Hedging reserve | Cost of hedging reserve | Fair value reserve |
1 January 2021 | ( | ( | ( | ||
Foreign exchange translation differences | |||||
Net investment hedging losses | ( | ||||
Remeasurements of defined benefit plans | |||||
Net fair value (losses)/gains | — | — | ( | ( | |
Transfer to income statement | ( | — | |||
Movement attributable to non-controlling interests | ( | ||||
31 December 2021 | ( | ( | ( | ( | |
Foreign exchange translation differences | |||||
Net investment hedging losses | ( | ||||
Remeasurements of defined benefit plans | ( | ||||
Net fair value gains/(losses) | — | — | ( | ( | |
Transfer to income statement | — | ||||
Movement attributable to non-controlling interests | |||||
31 December 2022 | ( | ( | |||
Foreign exchange translation differences | ( | ||||
Net investment hedging gains | |||||
Remeasurements of defined benefit plans | ( | ||||
Net fair value gains/(losses) | — | — | ( | ( | |
Transfer to income statement | — | ( | |||
Movement attributable to non-controlling interests | |||||
31 December 2023 | ( | ( | ( |
(1)At 31 December 2023 translation differences include a EUR |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 182 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 183 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 184 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 185 | |||||||
2023 | 2022 | ||||||||||||||||||||
Carrying amounts | Fair value(1) | Carrying amounts | Fair value(1) | ||||||||||||||||||
Fair value through profit or loss | Fair value through other comprehensive income(2) | Fair value through profit or loss | Fair value through other comprehensive income(2) | ||||||||||||||||||
EURm | Amortized cost | Level 1 | Level 2 | Level 3 | Level 2 | Total | Total | Amortized cost | Level 1 | Level 2 | Level 3 | Level 2 | Total | Total | |||||||
Non-current interest-bearing financial investments | |||||||||||||||||||||
Investments in venture funds | |||||||||||||||||||||
Other non-current financial assets(3) | |||||||||||||||||||||
Other current financial assets(3) | |||||||||||||||||||||
Derivative assets(4) | |||||||||||||||||||||
Trade receivables(3) | |||||||||||||||||||||
Current interest-bearing financial investments | |||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||
Total financial assets | |||||||||||||||||||||
Long-term interest-bearing liabilities | |||||||||||||||||||||
Other long-term financial liabilities | |||||||||||||||||||||
Short-term interest-bearing liabilities | |||||||||||||||||||||
Other short-term financial liabilities | |||||||||||||||||||||
Derivative liabilities(4) | |||||||||||||||||||||
Discounts without performance obligations(3) | |||||||||||||||||||||
Trade payables | |||||||||||||||||||||
Total financial liabilities |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 186 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 187 | |||||||
Interest-bearing loans and other borrowings All borrowings presented in the table below are senior unsecured and have no financial covenants. | ||||||
Carrying amount EURm(1) | ||||||
Issuer/borrower | Instrument | Currency | Nominal (million) | Final maturity | 2023 | 2022 |
Nokia Corporation | EUR | 3/2024 | ||||
Nokia Corporation | EIB R&D Loan | EUR | 2/2025 | |||
Nokia Corporation | NIB R&D Loan(3) | EUR | 5/2025 | |||
Nokia Corporation | EUR | 5/2025 | ||||
Nokia Corporation | EUR | 3/2026 | ||||
Nokia Corporation | USD | 6/2027 | ||||
Nokia of America Corporation | USD | 1/2028 | ||||
Nokia Corporation | EUR | 5/2028 | ||||
Nokia of America Corporation | USD | 3/2029 | ||||
Nokia Corporation | linked Senior Notes(4) | EUR | 8/2031 | |||
Nokia Corporation | USD | 5/2039 | ||||
Nokia Corporation and various subsidiaries | Other borrowings | |||||
Total | ||||||
(1)Carrying amount includes EUR value gains (EUR (2)In February 2023 Nokia purchased in a tender offer EUR amount) of the notes due 15 May 2025 and EUR (3)The remaining loan from the Nordic Investment Bank (NIB) is repayable in (4)The bond has a one-time redemption premium at maturity of EUR across its value chain (Scope 1, 2, and 3) by Performance Target in Nokia’s Sustainable Finance Framework that enables the issuance of sustainability-linked financing instruments. |
Changes in level 3 financial assets and liabilities measured at fair value | |||||
2023 | 2022 | ||||
EURm | Financial assets | Financial liabilities | Financial assets | Financial liabilities | |
1 January | ( | ( | |||
Net (losses)/gains in income statement | ( | ||||
Additions(1) | |||||
Deductions(1) | ( | ( | |||
Transfers out of level 3 | ( | ||||
Other movements | ( | ||||
31 December | ( | ( | |||
(1)For level 3 financial assets, additions mainly include capital contributions to venture funds and deductions mainly include distributions from venture funds. | |||||
A net loss of EUR included in the profit and loss during 2023. |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 188 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 189 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 190 | |||||||
2023 | 2022 | ||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||
EURm | Fair value(1) | Notional(2) | Fair value(1) | Notional(2) | Fair value(1) | Notional(2) | Fair value(1) | Notional(2) | |||
Cash flow hedges | |||||||||||
Foreign exchange forward contracts | ( | ( | |||||||||
Currency options bought | |||||||||||
Currency options sold | |||||||||||
Fuel hedges | ( | ||||||||||
Cash flow and fair value hedges(3) | |||||||||||
Cross-currency swaps | ( | ( | |||||||||
Fair value hedges | |||||||||||
Interest rate swaps | ( | ( | |||||||||
Foreign exchange forward contracts | ( | ( | |||||||||
Firm commitments | ( | ( | |||||||||
Hedges on net investment in foreign subsidiaries | |||||||||||
Foreign exchange forward contracts | ( | ||||||||||
Derivatives not designated in hedge accounting relationships carried at fair value through profit and loss | |||||||||||
Foreign exchange forward contracts | ( | ( | |||||||||
Currency options bought | |||||||||||
Embedded derivatives(4) | |||||||||||
Other derivatives | |||||||||||
Total | ( | ( | |||||||||
(1)Included in other current financial and firm commitment assets and other financial and firm commitment liabilities in the statement of financial position. (2)Includes the gross amount of all notional values for contracts that have not yet been settled or canceled. The amount of notional value outstanding is not necessarily a measure or indication of market risk as the exposure of certain contracts may be offset by that of other contracts. (3)Cross-currency swaps have been designated partly as fair value hedges and partly as cash flow hedges. (4)Embedded derivatives are related to customer contracts. |
Notional (million in currency) | Fair value EURm | ||||||||
Entity | Instrument | Currency | Maturity | 2023 | 2022 | 2023 | 2022 | ||
Nokia Corporation | Interest rate swaps | EUR | 3/2024 | ( | |||||
Nokia Corporation | Interest rate swaps | EUR | 5/2025 | ( | |||||
Nokia Corporation | Interest rate swaps | EUR | 3/2026 | ( | ( | ||||
Nokia Corporation | Cross-currency swaps | USD | 6/2027 | ( | ( | ||||
Nokia Corporation | Interest rate swaps | EUR | 5/2028 | ( | ( | ||||
Nokia Corporation | Interest rate swaps | EUR | 8/2031 | ||||||
Nokia Corporation | Cross-currency swaps | USD | 5/2039 | ( | ( | ||||
Total | ( | ( |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 191 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 192 | |||||||
EURm | USD | CNY | JPY | INR |
2023 | ||||
Foreign exchange exposure designated as hedged item for cash flow hedging, net(1) | ( | ( | ||
Foreign exchange exposure designated as hedged item for fair value hedging for FX risk, net(2) | ||||
Foreign exchange exposure designated as hedged item for net investment hedging(3) | ||||
Foreign exchange exposure from interest-bearing liabilities(4) | ( | |||
Foreign exchange exposure from items on the statement of financial position, excluding interest-bearing liabilities, net | ( | ( | ||
Other foreign exchange derivatives, carried at fair value through profit and loss, net(5) | ( | ( | ( | |
2022 | ||||
Foreign exchange exposure designated as hedged item for cash flow hedging, net(1) | ( | ( | ||
Foreign exchange exposure designated as hedged item for fair value hedging for FX risk, net(2) | ||||
Foreign exchange exposure designated as hedged item for net investment hedging(3) | ||||
Foreign exchange exposure from interest-bearing liabilities(4) | ( | |||
Foreign exchange exposure from items on the statement of financial position, excluding interest-bearing liabilities, net | ( | ( | ( | |
Other foreign exchange derivatives, carried at fair value through profit and loss, net(5) | ( | ( |
EURm | Cash flow hedges(1) | Net investment hedges(1) | Fair value hedges for FX risk(1) | Fair value and cash flow hedges(1) |
2023 | ||||
Carrying amount of hedging instruments | ( | ( | ||
Notional amount of hedging instruments | ( | ( | ( | |
Notional amount of hedged items | ( | |||
Change in intrinsic value of hedging instruments since 1 January | ||||
Change in value of hedged items used to determine hedge effectiveness | ( | ( | ( | ( |
2022 | ||||
Carrying amount of hedging instruments | ( | ( | ( | |
Notional amount of hedging instruments | ( | ( | ( | |
Notional amount of hedged items | ( | |||
Change in intrinsic value of hedging instruments since 1 January | ( | ( | ( | ( |
Change in value of hedged items used to determine hedge effectiveness |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 193 | |||||||
The VaR risk measures for Nokia’s sensitivity to foreign exchange risks are presented in the Total VaR column and the simulated impact to financial statements is presented in the profit, other comprehensive income (OCI) and cumulative translation adjustment (CTA) columns in the table below. | |||||||||
2023 | 2022 | ||||||||
Simulated impact on financial statements | Simulated impact on financial statements | ||||||||
EURm | Total VaR | Profit | OCI | CTA | Total VaR | Profit | OCI | CTA | |
31 December | |||||||||
Average for the year | |||||||||
Range for the year |
The most significant foreign exchange hedging instruments under cash flow, net investment and fair value hedge accounting at 31 December: | ||||||||
Maturity breakdown of notional amounts (EURm)(1) | ||||||||
Currency | Fair value (EURm) | Weighted average hedged rate | Total | Within 3 months | Between 3 and 12 months | Between 1 and 3 years | Beyond 3 years | |
2023 | ||||||||
Cash flow hedge accounting | GBP | ( | ( | ( | ( | |||
USD | ( | ( | ( | |||||
USD | ( | |||||||
Net investment hedge accounting | CNY | ( | ( | |||||
Fair value hedge accounting for FX risk | USD | ( | ( | ( | ( | ( | ( | |
2022 | ||||||||
Cash flow hedge accounting | GBP | ( | ( | ( | ||||
JPY | ( | ( | ( | |||||
USD | ( | ( | ( | |||||
USD | ||||||||
Net investment hedge accounting | CNY | ( | ( | ( | ||||
USD | ( | ( | ( | |||||
Fair value hedge accounting for FX risk | USD | ( | ( | ( | ( | ( | ( | |
(1) Negative notional amounts indicate that hedges sell currency, and positive notional amounts indicate that hedges buy currency. |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 194 | |||||||
Interest rate profile of items under interest rate risk management at 31 December: | |||||
2023 | 2022 | ||||
EURm | Fixed rate | Floating rate(1) | Fixed rate | Floating rate(1) | |
Non-current interest-bearing financial investments | |||||
Current interest-bearing financial investments | |||||
Cash and cash equivalents | |||||
Interest-bearing liabilities | ( | ( | ( | ( | |
Financial assets and liabilities before derivatives | ( | ( | |||
Interest rate derivatives | ( | ( | |||
Financial assets and liabilities after derivatives | |||||
(1)All cash equivalents and derivative transaction-related collaterals with initial maturity of three months or less are considered floating rate for the purposes of interest rate risk management. |
Nokia’s sensitivity to interest rate exposure in the investment and debt portfolios is presented in the fair value column in the table below with simulated impact to the financial statements presented in the profit and other comprehensive income (OCI) columns. | |||||||
2023 | 2022 | ||||||
Impact on | Impact on | Impact on | Impact on | Impact on | Impact on | ||
EURm | fair value | profit | OCI | fair value | profit | OCI | |
Interest rates - increase by | ( | ( | ( | ||||
Interest rates - decrease by | ( | ( | ( | ( | |||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 195 | |||||||
Outstanding non-current and current interest-bearing financial investments, cash equivalents and cash classified by credit rating grades ranked in line with S&P Global Ratings categories at 31 December: | ||||||||
Cash equivalents and interest-bearing financial investments | ||||||||
EURm | Rating(1) | Cash | Due within 3 months | Due between 3 and 12 months | Due between 1 and 3 years | Due between 3 and 5 years | Due beyond 5 years | Total(2)(3) |
2023 | AAA | |||||||
AA+ - AA- | ||||||||
A+ - A- | ||||||||
BBB+ - BBB- | ||||||||
Other | ||||||||
Total | ||||||||
2022 | AAA | |||||||
AA+ - AA- | ||||||||
A+ - A- | ||||||||
BBB+ - BBB- | ||||||||
Other | ||||||||
Total | ||||||||
(1)Bank Parent Company ratings are used here for bank groups. Actual bank subsidiary ratings may differ from the Bank Parent Company rating. (2)Non-current and current interest-bearing financial investments and cash equivalents include bank deposits, structured deposits, investments in money market funds and investments in fixed income instruments. (3)Instruments that include a call feature have been presented at their final maturities. Instruments that are contractually due beyond three months include EUR (EUR |
The following table sets out financial assets and liabilities subject to offsetting under enforceable master netting agreements and similar arrangements at 31 December. To reconcile the items presented to the statement of financial position, items that are not subject to offsetting would need to be included, refer to Note 5.3. Derivative and firm commitment assets and liabilities. | ||||
Related amounts not set off in the statement of financial position | ||||
EURm | Net amounts of financial assets/ (liabilities) presented in the statement of financial position | Financial instruments assets/(liabilities) | Cash collateral (received)/pledged | Net amount |
2023 | ||||
Derivative assets | ( | ( | ||
Derivative liabilities | ( | ( | ||
Total | ( | ( | ||
2022 | ||||
Derivative assets | ( | ( | ||
Derivative liabilities | ( | ( | ||
Total | ( | ( |
The financial instruments subject to enforceable master netting agreements and similar arrangements are not offset in the statement of financial position as there is no intention to settle net or realize the asset and settle the liability simultaneously. |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 196 | |||||||
Nokia’s significant credit facilities and funding programs at 31 December: | |||||
Utilized (million) | |||||
Committed/uncommitted | Financing arrangement | Currency | Nominal (million) | 2023 | 2022 |
Committed | Revolving Credit Facility(1) | EUR | |||
Uncommitted | Finnish Commercial Paper Programme | EUR | |||
Uncommitted | Euro-Commercial Paper Programme | EUR | |||
Uncommitted | Euro Medium Term Note Programme(2) | EUR | |||
Total | |||||
(1)The facility has its maturity in June 2026, except for EUR (2)All euro-denominated bonds have been issued under the Euro Medium Term Note Programme. |
Changes in lease liabilities, interest-bearing liabilities and associated derivatives arising from financing activities: | |||||
EURm | Long-term interest-bearing liabilities | Short-term interest-bearing liabilities | Derivatives held to hedge long- term borrowings(1) | Lease liabilities(2) | Total |
1 January 2023 | |||||
Cash flows | ( | ( | ( | ( | ( |
Non-cash changes: | |||||
Changes in foreign exchange rates | ( | ( | ( | ( | |
Changes in fair value | ( | ||||
Reclassification between long-term and short-term | ( | ||||
Additions(3) | |||||
Other | ( | ( | ( | ||
31 December 2023 | |||||
1 January 2022 | |||||
Cash flows | ( | ( | ( | ||
Non-cash changes: | |||||
Changes in foreign exchange rates | ( | ||||
Changes in fair value | ( | ( | |||
Reclassification between long-term and short-term | ( | ||||
Additions(3) | |||||
Other | |||||
31 December 2022 | |||||
(1)Includes derivatives designated in fair value and cash flow hedge accounting relationships as well as derivatives not designated in hedge accounting relationship but hedging identifiable long-term borrowing exposure. (2)Includes non-current and current lease liabilities. (3)Includes new lease contracts as well as modifications and remeasurements of existing lease contracts. |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 197 | |||||||
2023 | 2022 | ||||||||||||
Due | Due | ||||||||||||
EURm | within 3 months | between 3 and 12 months | between 1 and 3 years | between 3 and 5 years | beyond 5 years | Total | within 3 months | between 3 and 12 months | between 1 and 3 years | between 3 and 5 years | beyond 5 years | Total | |
Non-current financial assets | |||||||||||||
Non-current interest-bearing financial investments | |||||||||||||
Other non-current financial assets(1) | |||||||||||||
Current financial assets | |||||||||||||
Other current financial assets excluding derivatives(1) | |||||||||||||
Current interest-bearing financial investments(2) | |||||||||||||
Cash and cash equivalents(2) | |||||||||||||
Cash flows related to derivative financial assets net settled: | |||||||||||||
Derivative contracts – receipts | ( | ( | ( | ( | ( | ( | |||||||
Cash flows related to derivative financial assets gross settled: | |||||||||||||
Derivative contracts – receipts | |||||||||||||
Derivative contracts – payments | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | |||
Trade receivables | |||||||||||||
Non-current financial and lease liabilities | |||||||||||||
Long-term interest-bearing liabilities | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | |
Long-term lease liabilities | ( | ( | ( | ( | ( | ( | ( | ( | |||||
Other non-current financial liabilities | ( | ( | ( | ( | ( | ( | |||||||
Current financial and lease liabilities | |||||||||||||
Short-term interest-bearing liabilities | ( | ( | ( | ( | ( | ( | |||||||
Short-term lease liabilities | ( | ( | ( | ( | ( | ( | |||||||
Other financial liabilities excluding derivatives(3) | ( | ( | ( | ( | ( | ( | |||||||
Cash flows related to derivative financial liabilities net settled: | |||||||||||||
Derivative contracts - payments | ( | ( | ( | ( | ( | ( | ( | ( | |||||
Cash flows related to derivative financial liabilities gross settled: | |||||||||||||
Derivative contracts – receipts | |||||||||||||
Derivative contracts – payments | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | |
Discounts without performance obligations | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | |||
Trade payables | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | |||
Commitments given and obtained | |||||||||||||
Loan commitments given undrawn(4) | ( | ( | ( | ( | ( | ( | |||||||
Loan commitments obtained undrawn(5) | ( | ( | ( | ||||||||||
(1)Other non-current financial assets and other current financial assets excluding derivatives include mainly customer financing-related loan receivables. (2)Instruments that include a call feature have been presented at their final maturities. Instruments that are contractually due beyond three months include EUR (3)Other financial liabilities excluding derivatives include a conditional obligation to China Huaxin presented in the earliest period as the exercise period is open. (4)Loan commitments given undrawn have been included in the earliest period in which they could be drawn or called. (5)Loan commitments obtained undrawn have been included based on the period in which they expire. These amounts include related commitment fees. |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 198 | |||||||
Section 6 |
EURm | Within 1 year | 1-5 years | More than 5 years |
2023 | |||
Purchase obligations | |||
Lease commitments(1) | |||
2022 | |||
Purchase obligations | |||
Lease commitments(1) |
EURm | 2023 | 2022 |
Guarantees on behalf of Group companies | ||
Guarantees issued by financial institutions | ||
Commercial guarantees(1) | ||
Non-commercial guarantees | ||
Corporate guarantees(2) | ||
Commercial guarantees(1) | ||
Non-commercial guarantees | ||
Financing commitments | ||
Customer finance commitments(3) | ||
Venture fund commitments(4) |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 199 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 200 | |||||||
Company name | Country of incorporation | Parent holding % | Group ownership interest % |
Nokia Solutions and Networks Oy | Finland | ||
Nokia of America Corporation | United States | — | |
Nokia Shanghai Bell Co., Ltd.(1) | China | — | |
Nokia Solutions and Networks B.V. | Netherlands | — | |
Nokia Technologies Oy | Finland | ||
Nokia Participations | France | — | |
Alcatel Lucent | France | — | |
Nokia Networks France | France | — | |
Nokia Solutions and Networks India Private Limited | India | — | |
Nokia Solutions and Networks Japan G.K. | Japan | — | |
Nokia Solutions and Networks Branch Operations Oy | Finland | — | |
Alcatel Submarine Networks | France | — | |
Nokia Arabia Limited | Saudi Arabia | — | |
Nokia Solutions and Networks do Brasil Telecomunicações Ltda. | Brazil | — | |
Nokia Solutions and Networks Taiwan Co., Ltd. | Taiwan | — | |
Nokia Spain, S.A. | Spain | — | |
Nokia UK Limited | United Kingdom | — | |
Nokia Solutions and Networks System Technology (Beijing) Co., Ltd.(2) | China | — | |
Nokia Canada Inc. | Canada | — | |
Nokia Solutions and Networks Italia S.p.A. | Italy | — | |
Nokia Solutions and Networks Australia Pty Ltd | Australia | — | |
(1)Nokia Group owns interests. Nokia Shanghai Bell Co., Ltd. is the parent company of the Nokia Shanghai Bell Group (NSB Group). Refer to Note 6.3. Significant partly-owned subsidiaries. (2)Nokia Solutions and Network System Technology (Beijing) Co., Ltd. is a wholly-owned subsidiary of Nokia Shanghai Bell Co., Ltd. and the Nokia Group has control over this subsidiary through its holding in the NSB Group. |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 201 | |||||||
EURm | 2023 | 2022 |
Summarized income statement | ||
Net sales(1) | ||
Operating loss | ( | ( |
Loss for the year | ( | ( |
Loss for the year attributable to: | ||
Equity holders of the parent | ( | ( |
Non-controlling interests(2) | ||
Summarized statement of financial position | ||
Non-current assets | ||
Non-current liabilities | ( | ( |
Non-current net assets | ||
Current assets(3) | ||
Current liabilities | ( | ( |
Current net assets | ||
Net assets(4) | ||
Non-controlling interests(2) | ||
Summarized statement of cash flows | ||
Net cash flows from operating activities | ||
Net cash flows from/(used in) investing activities | ( | |
Net cash flows used in financing activities | ( | ( |
Translation differences | ( | ( |
Net decrease in cash and cash equivalents | ( | ( |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 202 | |||||||
EURm | 2023 | 2022 | 2021 | ||
Sales | |||||
Purchases | ( | ( | ( | ||
Trade receivables | |||||
Trade payables | ( | ( | ( |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 203 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 204 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 205 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 206 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 207 | |||||||
1 | |
8 | |
11 | |
12.1 | |
12.2 | |
13 | |
15.1 | |
97.1 | |
101 | Interactive Data Files (Inline XBRL – Related Documents). |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 208 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 209 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 210 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 211 | |||||||
Symbol | Trading currency | |
Nasdaq Helsinki (since 1915) | NOKIA | EUR |
New York Stock Exchange (since 1994) | NOK | USD |
Euronext Paris (since 2015) | NOKIA | EUR |
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 212 | |||||||
Business overview | Corporate governance | Operating and financial review and prospects | General facts on Nokia | Financial statements | Other information | 213 | |||||||