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Nokia provides recast comparative quarterly financial information reflecting the presentation of Submarine Networks business as discontinued operation

Nokia Corporation
Stock Exchange Release
30 September 2024 at 23:00 EEST

Nokia provides recast comparative quarterly financial information reflecting the presentation of Submarine Networks business as discontinued operation

Nokia today provides recast comparative financial information for Nokia Group and Network Infrastructure segment for Q1 2024 and Q1-Q4 2023 reflecting the presentation of Submarine Networks business as discontinued operation.

Presentation of Submarine Networks business as discontinued operation

On 27 June 2024, Nokia announced it had entered into a put option agreement to sell Alcatel Submarine Networks (ASN) to the French State, represented by the Agence des participations de l'Etat (APE), subject to informing and consulting with the relevant employee representatives at ASN and Nokia along with other customary closing conditions and regulatory approvals. The put option agreement contemplates the sale of ASN for an enterprise value of EUR 350 million, while the final proceeds will depend on the working capital and net debt balances of ASN at closing. Upon entering into the agreement Nokia classified the assets and liabilities of ASN as held for sale and recorded an impairment loss of EUR 514 million on the measurement of ASN's net assets to fair value less costs to sell. Beginning from the second quarter of 2024 the Submarine Networks business, which was previously reported as part of Network Infrastructure operating segment, is presented as discontinued operation. The sale is expected to close at the end of 2024 or beginning of 2025.

To provide a basis for comparison, the following tables present summarized income statement information for Nokia Group and Network Infrastructure segment on an unaudited basis for all quarters and the full year of 2023, as well as for the first two quarters and first half of 2024, reflecting the presentation of Submarine Networks business as discontinued operation.

Nokia Group

 Reported  
EUR millionQ1'24Q2'24Q1-Q2'24  
Net sales 4 4444 4668 910  
Gross profit2 2101 9364 146  
Operating profit405432836  
Profit from continuing operations451370821  
Loss from discontinued operations(13)(512)(525)  
Profit/(loss) for the period438(142)296  
      
 Reported
EUR millionQ1'23Q2'23Q3'23Q4'23Q1-Q4'23
Net sales5 5755 4384 7095 41621 138
Gross profit2 1612 1481 8922 3458 546
Operating profit421469237        534        1 661
Profit/(loss) from continuing operations283287130(51)649
Profit from discontinued operations7231830
Profit/(loss) for the period289289133(33)679


 Comparable  
EUR millionQ1'24Q2'24Q1-Q2'24  
Net sales4 4444 4668 910  
Gross profit2 2461 9984 244  
Operating profit6004231 023  
Profit from continuing operations512328840  
Profit for the period512328840  
      
 Comparable
EUR millionQ1'23Q2'23Q3'23Q4'23Q1-Q4'23
Net sales5 5755 4384 7095 41621 138
Gross profit2 1722 1841 9212 4218 698
Operating profit4716194188302 337
Profit from continuing operations3324092935551 590
Profit for the period3324092935551 590

Network Infrastructure

EUR millionQ1'24Q2'24Q1-Q2'24  
Net sales1 4391 5222 961  
Gross profit5875851 172  
Gross margin %        40.8%                38.4%                39.6%          
Research and development expenses(301)(300)(602)  
Selling, general and administrative expenses(204)(207)(410)  
Other operating income and expenses31922  
Operating profit8597183  
Operating margin %        5.9%                6.4%                6.2%          
Share of results of associated companies and joint ventures  
Depreciation and amortization(43)(41)(84)  
      
EUR millionQ1'23Q2'23Q3'23Q4'23Q1-Q4'23
Net sales1 9641 7061 5341 7126 917
Gross profit8207026227652 910
Gross margin %        41.8%                41.1%                40.5%                44.7%                42.1%        
Research and development expenses(306)(285)(297)(323)(1 212)
Selling, general and administrative expenses(196)(193)(191)(195)(776)
Other operating income and expenses1828301794
Operating profit3362521652641 016
Operating margin %        17.1%                14.8%                10.8%                15.4%                14.7%        
Share of results of associated companies and joint ventures
Depreciation and amortization(42)(42)(41)(45)(171)

About Nokia

At Nokia, we create technology that helps the world act together.

As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs.

Service providers, enterprises and partners worldwide trust Nokia to deliver secure, reliable and sustainable networks today – and work with us to create the digital services and applications of the future.

Inquiries:

Nokia
Communications
Phone: +358 10 448 4900
Email: press.services@nokia.com
Maria Vaismaa, Global Head of External Communications

Nokia
Investor Relations
Phone: +358 4080 3 4080
Email: investor.relations@nokia.com

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