Related party transactions

12 Months Ended

Dec. 31, 2023

6.4. Related party transactions

Nokia has related party transactions with its subsidiaries, associated companies, joint ventures

and pension funds as well as the management and the Board of Directors. Transactions and

balances between group companies are eliminated on consolidation. For more information on

principles of consolidation and principal Group companies, refer to Note 1.2. General accounting

policies, and Note 6.2. Principal Group companies, respectively.

Transactions with associated companies and joint ventures

Investments in associated companies and joint ventures are individually immaterial.

In 2016, Nokia entered into a strategic agreement with HMD Global Oy (HMD) granting HMD an

exclusive global license to create Nokia branded mobile phones and tablets for ten years. Under

the agreement, Nokia receives royalty payments from HMD for sales of Nokia branded mobile

phones and tablets, covering both brand and patent licensing. In August 2023, Nokia and HMD

amended the licensing agreement so that HMD’s exclusive license to create Nokia branded

devices will expire by March 2026. Nokia has held an ownership interest in HMD since 2020

which it has accounted for as an investment in associate. In 2023, Nokia recorded an impairment

loss of EUR 28 million related to its investment in HMD in the share of result of associates and

joint ventures.

Nokia holds a 51% ownership interest in TD Tech Holding Limited (“TD Tech HK”), a Hong Kong

based joint venture holding company which Nokia has accounted for as an investment in

associate. In 2023, TD Tech HK has entered into an agreement to divest the entire business

of the joint venture through the sale of TD Tech HK’s operating subsidiaries to a consortium

consisting of Huawei Technologies, Chengdu High-tech Investment Group and other buyers. The

closing of the transaction is conditional upon receiving regulatory approvals for the transaction

and is expected in 2024. Following the transaction, Nokia will exit from its shareholding in TD

Tech HK. Nokia expects to record a gain on the contemplated transactions. At 31 December

2023, the carrying amount of Nokia’s investment in TD Tech HK is included in assets held for

sale in the statement of financial position.

Transactions with pension funds

Nokia has borrowings of EUR 37 million (EUR 37 million in 2022) from Nokia

Unterstützungsgesellschaft mbH, Nokia’s German pension fund, a separate legal entity. The loan

bears interest at the rate of 6% per annum and its duration is pending until further notice by the

loan counterparties who have the right to terminate the loan with a 90-day notice. The loan is

included in short-term interest-bearing liabilities in the statement of financial position. For more

information on Nokia’s post-employment benefit plans, refer to Note 3.4. Pensions and other

post-employment benefits.

Transactions with the Group Leadership Team and the Board of Directors

No loans were granted to the members of the Group Leadership Team and the Board of

Directors in 2023, 2022 or 2021. For information on remuneration of Nokia’s key management

personnel, refer to Note 3.2. Remuneration of key management.