Nokia (NYSE:NOK) 2025 Earnings Call Presentation

Market Overview and Growth - Nokia's addressable market in 2028 is estimated to be €72 billion for Telecommunication Providers, €24 billion for AI & Cloud, and €20 billion for Mission Critical Enterprise including Defense[20] - The market CAGR from 2025 to 2028 is projected at 1% for Telecommunication Providers, 16% for AI & Cloud, and 11% for Mission Critical Enterprise including Defense[20] - Consumer AI traffic is expected to grow at a CAGR of over 20% over the next decade, while enterprise and industrial AI traffic is projected to grow at approximately 50% CAGR over the same period[11, 12] - Network Infrastructure's serviceable addressable market (SAM) is expected to grow from €48 billion in 2025 to €60 billion in 2028, representing a 9% CAGR[16, 74] Financial Performance and Targets - Network Infrastructure achieved 8% net sales growth (TTM Q4'24-Q3'25) and aims for a 6-8% CAGR from 2025-2028[29] - Network Infrastructure targets an operating margin of 13%-17% by 2028, compared to the current 10% (TTM Q4'24-Q3'25)[29] - Mobile Infrastructure aims to increase its operating profit from a base of €15 billion and achieve a gross margin of 48-50% by 2028[29] - The company is targeting a reduction in the corporate center cost base to €150 million, from the current €360 million (TTM Q4'24-Q3'25)[29] - Nokia is targeting a double-digit CAGR comparable operating profit growth through 2028[32, 183] Strategic Priorities and Portfolio Management - Nokia is divesting from portfolio businesses with €09 billion TTM revenue and €-01 billion TTM operating margin[26] - Technology Standards has over €08 billion of annual revenue under contract until 2030 and over €02 billion of annual revenue run-rate from expansion areas[153, 158]