Core Insights - Cybernet, Pakistan's leading fiber broadband provider, has partnered with Nokia to deploy a new long-haul Optical Fiber Cable network capable of delivering 1.2 terabits per second (Tbps) per wavelength, significantly enhancing the country's digital infrastructure [1][3][10] - The new network will connect over 25 cities in its initial phase and provide more than 50 Tbps of long-haul capacity, supporting various connectivity solutions including data center interconnect and enterprise networks [1][2][10] - This initiative aims to accelerate Pakistan's digital transformation and improve regional connectivity by offering scalable, high-capacity services at competitive rates [4][5] Company Overview - Cybernet has over 25 years of experience in the telecommunications sector, operating the largest and most resilient FTTX network in Pakistan, serving enterprise, carrier, and residential customers [11] - The company also owns StormFiber, a rapidly growing fiber broadband provider, and offers a wide range of services including Carrier Ethernet, IPLC, and cloud hosting [11] - Cybernet's investment in Nokia's 1830 GX platform with integrated optical line system capabilities is a strategic move to meet the increasing bandwidth demands of its customers [3][10] Industry Impact - The deployment of Nokia's optical transport solution is expected to modernize Pakistan's connectivity landscape, enabling high-speed, low-latency services across the country [6][10] - The new backbone will facilitate cross-border transit services for carriers and internet service providers in Central Asia, enhancing regional digital connectivity [4][6] - By leveraging advanced technology, Cybernet aims to stay ahead of the surging bandwidth demands and improve the overall user experience for its customers [5][6]

Core Insights - Cybernet, Pakistan's leading fiber broadband provider, has partnered with Nokia to deploy a new long-haul Optical Fiber Cable network capable of delivering 1.2 terabits per second (Tbps) per wavelength, significantly enhancing the country's digital infrastructure [1][3][10] - The new network will connect over 25 cities in its initial phase and provide more than 50 Tbps of long-haul capacity, supporting various connectivity solutions including data center interconnect and consumer broadband services [1][2][10] - This initiative aims to accelerate Pakistan's digital transformation and improve regional connectivity by offering scalable, high-capacity services at competitive rates [4][5] Company Overview - Cybernet has over 25 years of experience in the telecommunications sector, operating the largest FTTX network in Pakistan and serving enterprise, corporate, and residential customers [11] - The company also provides international connectivity services and is the parent company of StormFiber, a rapidly growing fiber broadband provider [11] - Cybernet's investment in Nokia's 1830 GX platform with ICE7 coherent optics is a strategic move to meet increasing bandwidth demands and enhance service offerings [3][10] Industry Impact - The deployment of Nokia's optical transport solution is expected to modernize Pakistan's connectivity landscape, enabling high-speed, low-latency services across the country [6][10] - The new backbone will facilitate cross-border transit services for carriers and internet service providers in Central Asia, fostering greater regional integration [4][6] - By leveraging advanced technology, the initiative positions Cybernet to better serve its customers and contribute to the global digital economy [5][6]

Corporate Governance - Nokia Corporation's Board of Directors elected Sari Baldauf as Chair and Timo Ihamuotila as Vice Chair [1] - Thomas Dannenfeldt was elected as Chair of the Audit Committee, with Pernille Erenbjerg, Lisa Hook, and Mike McNamara as members [1] - Timo Ihamuotila was elected as Chair of the Corporate Governance and Nomination Committee, with Sari Baldauf, Pernille Erenbjerg, and Thomas Saueressig as members [1] - Thomas Dannenfeldt was elected as Chair of the Personnel Committee, with Timo Ahopelto, Sari Baldauf, and Elizabeth Crain as members [1] - Kai Öistämö was elected as Chair of the Technology Committee, with Timo Ahopelto, Mike McNamara, and Thomas Saueressig as members [1] - Elizabeth Crain was elected as Chair of the Strategy Committee, with Sari Baldauf, Lisa Hook, Timo Ihamuotila, and Kai Öistämö as members [1] Dividend Announcement - The Board of Directors resolved to distribute a dividend of EUR 0.04 per share, based on the authorization from the Annual General Meeting 2025 [1] - The dividend will be paid to shareholders registered by the record date of 5 May 2025, with payment scheduled for 12 May 2025 [1] - The remaining asset distribution authorization for the Board is a maximum of EUR 0.10 per share [1] Company Overview - Nokia is a B2B technology innovation leader, creating technology that enables global collaboration [2] - The company focuses on pioneering networks that leverage mobile, fixed, and cloud technologies [2] - Nokia Bell Labs, celebrating 100 years of innovation, leads the company's long-term research and intellectual property initiatives [2]

Corporate Governance - Nokia Corporation's Board of Directors elected Sari Baldauf as Chair and Timo Ihamuotila as Vice Chair [1] - Thomas Dannenfeldt was elected as Chair of the Audit Committee, with Pernille Erenbjerg, Lisa Hook, and Mike McNamara as members [1] - Timo Ihamuotila was elected as Chair of the Corporate Governance and Nomination Committee, with Sari Baldauf, Pernille Erenbjerg, and Thomas Saueressig as members [1] - Thomas Dannenfeldt was elected as Chair of the Personnel Committee, with Timo Ahopelto, Sari Baldauf, and Elizabeth Crain as members [1] - Kai Öistämö was elected as Chair of the Technology Committee, with Timo Ahopelto, Mike McNamara, and Thomas Saueressig as members [1] - Elizabeth Crain was elected as Chair of the Strategy Committee, with Sari Baldauf, Lisa Hook, Timo Ihamuotila, and Kai Öistämö as members [1] Dividend Announcement - The Board of Directors resolved a dividend of EUR 0.04 per share, to be paid to shareholders registered by 5 May 2025 [1] - The dividend payment date is set for 12 May 2025, with the actual date for payments outside Finland determined by intermediary banks [1] - Following this dividend announcement, the Board's remaining asset distribution authorization is a maximum of EUR 0.10 per share [1] Company Overview - Nokia is a B2B technology innovation leader, creating technology that helps the world act together [2] - The company is pioneering networks that sense, think, and act, leveraging work across mobile, fixed, and cloud networks [2] - Nokia Bell Labs, celebrating 100 years of innovation, leads the company's long-term research and intellectual property efforts [2]

Core Points - The Annual General Meeting (AGM) of Nokia Corporation took place on April 29, 2025, in Helsinki, Finland, where all proposals from the Board of Directors were approved [1] - The AGM adopted the Company's financial statements and discharged the Board members and CEO from liability for the financial year 2024 [1] Financial Resolutions - The AGM decided not to distribute any dividend but authorized the Board to resolve on a maximum distribution of EUR 0.14 per share from retained earnings or the reserve for invested unrestricted equity [2] - The authorization for asset distribution is valid until the next AGM, with specific record and payment dates set for potential distributions [3][4] Board Composition - The AGM elected ten members to the Board, re-electing eight members and adding two new members for a term ending at the close of the next AGM [5] Board Members' Remuneration - The annual fees for Board members were set, with EUR 440,000 for the Chair, EUR 210,000 for the Vice Chair, and EUR 185,000 for each member, along with additional fees for committee chairs [6] - Approximately 40% of the annual fee will be paid in Nokia shares, with the remainder in cash to cover taxes [7] Auditor and Sustainability Reporting - Deloitte Oy was re-elected as the auditor and sustainability reporting assurer for the financial year 2026 [9] Share Repurchase and Issuance Authorization - The AGM authorized the Board to repurchase a maximum of 530 million shares, effective until October 28, 2026 [10] - The Board was also authorized to issue a maximum of 530 million shares or special rights, effective until October 28, 2026 [11]

Nokia CorporationStock Exchange Release29 April 2025 at 15.45 EESTResolutions of Nokia Corporation’s Annual General MeetingEspoo, Finland – The Annual General Meeting (AGM) of Nokia Corporation took place today 29 April 2025 in Helsinki, Finland. The AGM approved all the proposals of the Board of Directors to the AGM. The AGM adopted the Company’s financial statements, discharged the members of the Board and the President and Chief Executive Officer from liability for the financial year 2024 and adopted the ...

In the previous quarter , Nokia Oyj (NYSE: NOK ) reported strong results. The company posted earnings and revenue that beat expectations. Cash flow strengthened enough to allow the firm to buy back shares and commit toPlease [+]Follow me for coverage on deeply discounted stocks. To dive deeper beyond the ideas in this article, get do-it-yourself tips and tricks in two ways.First, subscribe to the Free DIY Tier to get a preview of the subscription. Read dozens of articles. This is separate from the alerts yo ...

Nokia Corporation (NOK) reported weaker-than-expected first-quarter 2025 results, with both bottom and top lines missing the Zacks Consensus Estimate. The company's top line decreased year over year, primarily owing to declining trends in the Nokia Technologies segment. However, healthy free cash flow and solid traction in the Network Infrastructure, Cloud and Network Services segments are positives.NOK’s Net IncomeNokia reported a net loss of €60 million ($63 million) or a loss of €0.01 (a penny) per share ...

Financial Performance - Nokia's Q1 2025 net sales experienced a year-on-year decline of 3% on a constant currency and portfolio basis[17][42] - The company's Q1 2025 gross margin was 423%[15] - Nokia reported a Q1 2025 operating margin of 36%, a decrease of 990 basis points year-on-year[16] - Strong free cash flow (FCF) was reported at EUR 07 billion, with a net cash position of EUR 30 billion after the Infinera acquisition[9][16] Business Segment Highlights - Network Infrastructure experienced strong growth of 11%, with Optical Networks growing by 15%[9][24] - Cloud and Network Services grew by 8%, driven by strong demand for 5G core[9][33] - Mobile Networks stabilized with 2% growth[9][28] Nokia Technologies - Nokia Technologies experienced a challenging year-on-year comparison due to over EUR 400 million of catch-up net sales in Q1 2024[41] - Continued execution in Nokia Technologies led to a contracted run-rate of EUR 14 billion[41] Strategic Initiatives - The Infinera acquisition closed in Q1, targeting EUR 200 million of operating profit synergies by 2027[10] - Optical Networks market share was 26% on a proforma basis in 2024, with sales growth of 15% in Q1[11] Outlook - Nokia's full year 2025 outlook remains unchanged, with a comparable operating profit target of EUR 19 billion to EUR 24 billion[8][47] - The company anticipates a 50% to 80% conversion of comparable operating profit to free cash flow for the full year 2025[47]

[Q1 2025 Performance Overview](index=3&type=section&id=Q1%202025%20Performance%20Overview) Nokia's Q1 2025 performance saw a net sales decline, influenced by prior-year licensing and a one-time charge, alongside strategic acquisitions and varied segment profitability [CEO Commentary](index=3&type=section&id=CEO%20Commentary) The new President and CEO highlighted Nokia's strong technology base and potential for expansion, noting a net sales decline primarily due to prior-year licensing catch-up revenue - The new CEO's early focus is on capital allocation to drive efficiency and invest in growth segments for long-term value creation[6](index=6&type=chunk) - The Infinera acquisition was completed in Q1, enhancing Nokia's scale in Optical Networks and with hyperscalers, with integration underway and strong initial order intake[7](index=7&type=chunk)[10](index=10&type=chunk) - Q1 net sales declined **3%** (constant currency), but grew **7%** excluding the prior-year licensing catch-up revenue[9](index=9&type=chunk)[42](index=42&type=chunk) - Mobile Networks' profitability was impacted by a one-time contract settlement with a net impact of **EUR 120 million**, related to a project from 2019[11](index=11&type=chunk)[44](index=44&type=chunk) [Financial Highlights](index=3&type=section&id=Financial%20Highlights) Nokia's Q1 2025 reported net sales were EUR 4,390 million, with a significant drop in comparable operating margin to 3.6%, resulting in EUR 0.03 comparable diluted EPS, yet generating strong free cash flow Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Net Sales (Reported)** | EUR 4,390 million | EUR 4,444 million | -1% | | **Net Sales (Constant Currency & Portfolio)** | | | -3% | | **Comparable Gross Margin** | 42.3% | 50.5% | -820 bps | | **Comparable Operating Margin** | 3.6% | 13.5% | -990 bps | | **Comparable Diluted EPS** | EUR 0.03 | EUR 0.09 | -67% | | **Reported Diluted EPS** | EUR -0.01 | EUR 0.08 | | | **Free Cash Flow** | EUR 0.7 billion | | | | **Net Cash Balance** | EUR 3.0 billion | EUR 5.1 billion | -42% | [Financial Results Analysis](index=13&type=section&id=Financial%20Results%20Analysis) Nokia's Q1 2025 financial results show a net sales decline and reduced profitability, with varied regional performance and significant cash flow impact from the Infinera acquisition [Overall Financial Performance (Q1 2025 vs Q1 2024)](index=13&type=section&id=Overall%20Financial%20Performance%20%28Q1%202025%20vs%20Q1%202024%29) In Q1 2025, Nokia's reported net sales decreased by 1% to EUR 4,390 million, with comparable gross margin falling to 42.3% and operating profit decreasing by 74%, primarily due to Nokia Technologies and a Mobile Networks charge Q1 2025 vs Q1 2024 Financial Performance (Comparable) | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | EUR 4,390 million | EUR 4,444 million | -1% | | Gross Profit | EUR 1,857 million | EUR 2,246 million | -17% | | Gross Margin % | 42.3% | 50.5% | -820 bps | | Operating Profit | EUR 156 million | EUR 600 million | -74% | | Operating Margin % | 3.6% | 13.5% | -990 bps | | Profit for the period | EUR 153 million | EUR 512 million | -70% | - The decline in comparable operating profit was driven by lower gross profit and higher operating expenses from targeted investments for long-term growth, with venture fund investments also generating a loss of approximately **EUR 30 million**[62](index=62&type=chunk)[63](index=63&type=chunk) [Net Sales Analysis](index=17&type=section&id=Net%20Sales%20Analysis) Nokia's net sales varied significantly by region and customer type, with strong growth in the Americas and APAC, but a decline in EMEA, and notable growth in CSP and Enterprise sales offset by a drop in Licensee revenue [By Region](index=17&type=section&id=By%20Region) Net Sales by Region (Constant Currency & Portfolio YoY Change) | Region | Q1 2025 YoY Change (CC & Portfolio) | | :--- | :--- | | **Americas** | **+18%** | | - North America | +21% | | - Latin America | -4% | | **APAC** | **+12%** | | - India | +73% | | - Greater China | -18% | | - Rest of APAC | -8% | | **EMEA** | **-21%** | | - Europe | -25% | | - Middle East & Africa | -6% | [By Customer Type](index=17&type=section&id=By%20Customer%20Type) Net Sales by Customer Type (Constant Currency & Portfolio YoY Change) | Customer Type | Q1 2025 YoY Change (CC & Portfolio) | | :--- | :--- | | Communications service providers (CSP) | +3% | | Enterprise | +27% | | Licensees | -52% | | Other | -90% | - The strong growth in the Enterprise segment was driven by both hyperscale and other enterprise customers, particularly in Network Infrastructure[97](index=97&type=chunk) [Cash Flow Performance](index=19&type=section&id=Cash%20Flow%20Performance) Nokia generated a positive free cash flow of EUR 721 million in Q1 2025, but its net cash position decreased by EUR 1.9 billion, primarily due to the approximately EUR 2.3 billion impact of the Infinera acquisition - Free cash flow was positive **EUR 721 million** in Q1 2025[69](index=69&type=chunk)[105](index=105&type=chunk) - Net cash decreased by **EUR 1,866 million** sequentially, ending the quarter at **EUR 2,988 million**[69](index=69&type=chunk) - The Infinera acquisition had a total impact of approximately **EUR 2.3 billion** on the net cash position, consisting of **EUR 990 million** cash payment, **EUR 785 million** in convertible bonds, and **EUR 550 million** in related share buybacks[109](index=109&type=chunk) - Net cash from operating activities was **EUR 890 million**, driven by adjusted profit and a cash inflow from net working capital of **EUR 610 million**, primarily from a decrease in receivables[106](index=106&type=chunk)[110](index=110&type=chunk) [Business Segment Analysis](index=14&type=section&id=Business%20Segment%20Analysis) This section provides a detailed analysis of Nokia's Q1 2025 performance across its key business segments, highlighting sales trends and profitability drivers [Network Infrastructure](index=14&type=section&id=Network%20Infrastructure) Network Infrastructure delivered strong Q1 2025 performance with 11% constant currency net sales growth across all units, and improved operating margin to 7.8%, boosted by the Infinera acquisition Network Infrastructure Q1 2025 Performance | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | EUR 1,722 million | EUR 1,439 million | +20% | | Net Sales (CC & Portfolio) | | | +11% | | Operating Profit | EUR 135 million | EUR 85 million | +59% | | Operating Margin % | 7.8% | 5.9% | +190 bps | - Optical Networks net sales grew **15%** (constant currency & portfolio), reflecting improved demand, particularly from hyperscalers in North America[75](index=75&type=chunk) - IP Networks net sales increased **7%** (constant currency), led by double-digit growth from enterprise and hyperscale customers[74](index=74&type=chunk) - Fixed Networks net sales grew **9%** (constant currency), driven by fixed wireless access deployments in India and fiber investment in North America[76](index=76&type=chunk) [Mobile Networks](index=15&type=section&id=Mobile%20Networks) Mobile Networks' net sales grew 2% constant currency in Q1 2025, driven by North America, but profitability was severely impacted by a one-time EUR 120 million contract settlement charge, leading to an -8.8% operating margin Mobile Networks Q1 2025 Performance | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | EUR 1,729 million | EUR 1,682 million | +3% | | Net Sales (CC) | | | +2% | | Operating Loss | EUR (152) million | EUR (32) million | +375% | | Operating Margin % | -8.8% | -1.9% | -690 bps | - Gross margin declined by **1,000 bps**, mostly due to a one-time contract settlement with a net impact of **EUR 120 million** related to a customer project that started in 2019[81](index=81&type=chunk) - Net sales growth was driven by the Americas (**+24% CC**), particularly North America, while EMEA declined (**-10% CC**)[79](index=79&type=chunk)[80](index=80&type=chunk) [Cloud and Network Services](index=15&type=section&id=Cloud%20and%20Network%20Services) Cloud and Network Services reported strong 8% constant currency net sales growth driven by Core Networks, with a significant turnaround in operating margin to 2.5% due to higher gross profit and stable operating expenses Cloud and Network Services Q1 2025 Performance | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | EUR 567 million | EUR 546 million | +4% | | Net Sales (CC & Portfolio) | | | +8% | | Operating Profit/(Loss) | EUR 14 million | EUR (37) million | N/A | | Operating Margin % | 2.5% | -6.8% | +930 bps | - Growth was mainly driven by strength in Core Networks, with the difference between reported (**+4%**) and constant currency & portfolio growth (**+8%**) due to divestments in early 2024[83](index=83&type=chunk) - Gross margin increased by **650 bps** to **45.9%**, driven by top-line growth and margin expansion in both Core and Applications businesses[84](index=84&type=chunk) [Nokia Technologies](index=16&type=section&id=Nokia%20Technologies) Nokia Technologies' net sales declined 52% constant currency in Q1 2025 due to a high prior-year comparison base, but the business continues to execute, signing new deals and increasing its contracted annual net sales run-rate to approximately EUR 1.4 billion Nokia Technologies Q1 2025 Performance | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | EUR 369 million | EUR 757 million | -51% | | Net Sales (CC) | | | -52% | | Operating Profit | EUR 259 million | EUR 658 million | -61% | | Operating Margin % | 70.2% | 86.9% | -1670 bps | - The sales decline was due to more than **EUR 400 million** in catch-up net sales recognized in Q1 2024[86](index=86&type=chunk) - The annual net sales run-rate has increased to approximately **EUR 1.4 billion**[88](index=88&type=chunk) - New patent license agreements were signed with Amazon and other smaller companies during the quarter[87](index=87&type=chunk) [Group Common and Other](index=16&type=section&id=Group%20Common%20and%20Other) Net sales for Group Common and Other declined by 83% in Q1 2025 due to reduced sales from RFS divestments, and the operating loss widened, primarily driven by a loss of approximately EUR 30 million from venture fund investments Group Common and Other Q1 2025 Performance | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | EUR 4 million | EUR 23 million | | Operating Loss | EUR (99) million | EUR (75) million | - The decline in operating result was primarily driven by a loss of approximately **EUR 30 million** from Nokia's venture fund investments[91](index=91&type=chunk) [Outlook and Shareholder Distribution](index=6&type=section&id=Outlook%20and%20Shareholder%20Distribution) Nokia maintains its full-year 2025 outlook, forecasting comparable operating profit and free cash flow, while proposing a dividend and completing a share buyback program [Full Year 2025 Outlook](index=6&type=section&id=Full%20Year%202025%20Outlook) Nokia maintained its full-year 2025 outlook, including the Infinera acquisition impact, forecasting comparable operating profit between EUR 1.9 billion and EUR 2.4 billion, and 50% to 80% free cash flow conversion Full Year 2025 Outlook | Metric | Full Year 2025 Guidance | | :--- | :--- | | Comparable operating profit | EUR 1.9 billion to EUR 2.4 billion | | Free cash flow | 50% to 80% conversion from comparable operating profit | Full Year 2025 Underlying Assumptions | Assumption | Full Year 2025 | | :--- | :--- | | Group Common and Other operating expenses | ~ EUR 400 million | | Comparable financial income and expenses | Positive EUR 50 to 150 million | | Comparable income tax rate | ~25% | | Cash outflows related to income taxes | EUR 500 million (updated) | | Capital Expenditures | EUR 650 million (updated) | - The company expects a potential short-term disruption from tariffs, with an estimated **EUR 20 to 30 million** impact on comparable operating profit in Q2, but has not made assumptions for the second half of the year[14](index=14&type=chunk) [Shareholder Distribution](index=6&type=section&id=Shareholder%20Distribution) Nokia's Board proposed a dividend of up to EUR 0.14 per share for FY2024, payable in four installments, and completed a share buyback program of 150 million shares for approximately EUR 703 million to offset Infinera dilution - The Board proposes a maximum dividend of **EUR 0.14 per share** for the 2024 financial year, to be distributed in four installments[18](index=18&type=chunk) - A share buyback program to offset dilution from the Infinera deal was completed, with **150 million shares** repurchased for approximately **EUR 703 million**[19](index=19&type=chunk) [Sustainability Initiatives](index=20&type=section&id=Sustainability%20Initiatives) Nokia advanced its sustainability strategy in Q1, achieving SBTi validation for net-zero targets, showcasing energy-efficient solutions, and making progress in industrial digitalization and digital inclusion - **Environment:** Nokia's net-zero by 2040 target was validated by SBTi, focusing on energy efficiency, showcasing a Virtual Power Plant solution, and recognized as a leader in Scope 3 emissions management[113](index=113&type=chunk)[114](index=114&type=chunk)[116](index=116&type=chunk) - **Industrial Digitalization:** Nokia was selected by TenneT to provide optical networking for offshore wind platforms and partnered with Hetzner to upgrade its data center network for better energy efficiency[119](index=119&type=chunk)[120](index=120&type=chunk) - **Security and Privacy:** Formed a strategic partnership to advance Quantum-Safe Networks (QSN) and signed a deal with Fibrus to deploy the Nokia Deepfield solution for network protection against cyber threats[121](index=121&type=chunk)[122](index=122&type=chunk) - **Bridging the Digital Divide:** Announced new fiber-to-the-home deals and launched 'Broadband Easy', an automated platform to accelerate fiber optic deployments, especially in rural areas[123](index=123&type=chunk)[124](index=124&type=chunk) - **Responsible Business:** For the seventh time, Nokia was named one of the World's Most Ethical Companies® by Ethisphere[125](index=125&type=chunk) [Corporate Governance and Other Information](index=21&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers significant corporate events including CEO transition and the Infinera acquisition, outlines AGM proposals, and details key risk factors affecting future performance [Significant Events](index=21&type=section&id=Significant%20Events) The first quarter of 2025 was marked by significant corporate changes, including a CEO transition and the completion of the Infinera Corporation acquisition to enhance optical networks business - Justin Hotard was appointed President and CEO, effective April 1, 2025, succeeding Pekka Lundmark[128](index=128&type=chunk) - The acquisition of Infinera Corporation was completed on February 28, 2025, to improve scale and profitability in optical networks[129](index=129&type=chunk) [AGM Proposals](index=21&type=section&id=AGM%20Proposals) For the Annual General Meeting, the Board proposed a dividend of up to EUR 0.14 per share, re-election and election of Board members, and authorization for share repurchases and issuance - Proposal to authorize a dividend of up to **EUR 0.14 per share**[130](index=130&type=chunk) - Proposal to re-elect eight current Board members and elect two new members: Pernille Erenbjerg and Timo Ihamuotila[130](index=130&type=chunk) - Proposal to authorize the Board to repurchase and issue a maximum of **530 million shares**[130](index=130&type=chunk) [Risk Factors & Forward-Looking Statements](index=7&type=section&id=Risk%20Factors%20%26%20Forward-Looking%20Statements) The report outlines numerous risks and uncertainties that could affect Nokia's performance, including competitive intensity, supply chain issues, macroeconomic factors, geopolitical conflicts, and patent licensing agreement timing - Key operational risks include competitive intensity, customer investment changes, and supply chain disruptions for components like semiconductors[26](index=26&type=chunk) - Macroeconomic risks include inflation, currency fluctuations, tariffs, and geopolitical conflicts[26](index=26&type=chunk) - Business-specific risks involve the timing and value of patent licensing agreements, litigation outcomes, and the ability to successfully integrate acquisitions like Infinera[26](index=26&type=chunk) [Financial Statements and Notes](index=23&type=section&id=Financial%20Statements%20and%20Notes) This section presents Nokia's unaudited Q1 2025 consolidated financial statements, detailed notes, and explanations of alternative performance measures used for business analysis [Consolidated Financial Statements](index=23&type=section&id=Consolidated%20Financial%20Statements) The report includes condensed, unaudited consolidated financial statements for Q1 2025, covering the Income Statement, Statement of Comprehensive Income, Statement of Financial Position, Statement of Cash Flows, and Statement of Changes in Shareholders' Equity Condensed Consolidated Income Statement (Reported) | EUR million | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | 4,390 | 4,444 | | Gross profit | 1,824 | 2,210 | | Operating (loss)/profit | (48) | 405 | | (Loss)/profit for the period | (60) | 438 | | Diluted EPS (EUR) | (0.01) | 0.08 | Condensed Consolidated Statement of Financial Position | EUR million | 31 March 2025 | 31 Dec 2024 | | :--- | :--- | :--- | | Total assets | 39,261 | 39,149 | | Total equity | 20,819 | 20,747 | | Total liabilities | 18,443 | 18,402 | | Net cash and interest-bearing financial investments | 2,988 | 4,854 | [Notes to Financial Statements](index=28&type=section&id=Notes%20to%20Financial%20Statements) The notes provide detailed explanations for the financial statements, including segment reporting changes, Infinera acquisition accounting, discontinued operations, regional sales, pension plans, and provisions - **Infinera Acquisition:** The total purchase consideration was **EUR 2.5 billion**, with provisional goodwill of **EUR 872 million** attributed to the acquired workforce and anticipated synergies[24](index=24&type=chunk)[172](index=172&type=chunk)[175](index=175&type=chunk) - **Discontinued Operations:** The Submarine Networks business (Alcatel Submarine Networks) is presented as a discontinued operation, recording a loss of **EUR 13 million** in Q1 2024, with no profit or loss in Q1 2025[67](index=67&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk) - **Provisions:** A significant addition of **EUR 186 million** was made to warranty provisions, primarily due to a contract settlement for a customer project that began in 2019[204](index=204&type=chunk) [Alternative Performance Measures (APM)](index=37&type=section&id=Alternative%20Performance%20Measures%20%28APM%29) Nokia uses several non-IFRS measures, including comparable results and constant currency metrics, and introduced "constant currency and portfolio net sales growth" in Q1 2025 to better reflect underlying performance - Nokia introduced a new APM, "constant currency and portfolio net sales growth", to adjust for both currency impacts and portfolio changes like the Infinera acquisition[25](index=25&type=chunk)[71](index=71&type=chunk)[208](index=208&type=chunk) Reconciliation of Reported to Comparable Operating Profit (Q1 2025) | EUR million | Amount | | :--- | :--- | | **Reported operating (loss)/profit** | **(48)** | | Amortization of acquired intangible assets | 97 | | Restructuring and associated charges | 64 | | Transaction and related costs | 23 | | Release of acquisition-related fair value adjustments | 19 | | Impairment and write-off of assets | 1 | | **Comparable operating profit** | **156** |