Financial risk management (Tables)

12 Months Ended

Dec. 31, 2023

Disclosure of nature and extent of risks arising from financial instruments [abstract]

Schedule Of Notional Amounts In Currency Mix

Notional amounts in currencies that represent a significant portion of the currency mix in outstanding financial instruments and other hedged items at 31 December:

EURm	USD	CNY	JPY	INR
2023
Foreign exchange exposure designated as hedged item for cash flow hedging, net(1)	606	(232)	281	(153)
Foreign exchange exposure designated as hedged item for fair value hedging for FX risk, net(2)	1 354	—	—	—
Foreign exchange exposure designated as hedged item for net investment hedging(3)	—	788	—	184
Foreign exchange exposure from interest-bearing liabilities(4)	(750)	—	—	—
Foreign exchange exposure from items on the statement of financial position, excluding interest-bearing liabilities, net	2 475	(804)	147	(346)
Other foreign exchange derivatives, carried at fair value through profit and loss, net(5)	(205)	720	(100)	(38)
2022
Foreign exchange exposure designated as hedged item for cash flow hedging, net(1)	854	(402)	311	(68)
Foreign exchange exposure designated as hedged item for fair value hedging for FX risk, net(2)	1 458	—	—	—
Foreign exchange exposure designated as hedged item for net investment hedging(3)	3 007	866	—	192
Foreign exchange exposure from interest-bearing liabilities(4)	(758)	—	—	—
Foreign exchange exposure from items on the statement of financial position, excluding interest-bearing liabilities, net	(2 709)	(888)	204	(272)
Other foreign exchange derivatives, carried at fair value through profit and loss, net(5)	4 214	892	(151)	(1 117)

(1)Includes foreign exchange exposure from forecast cash flows related to sales and purchases. In some currencies, especially the US dollar, Nokia has substantial foreign exchange exposures in both estimated cash inflows and outflows. These underlying exposures have

been hedged.

(2)Includes foreign exchange exposure from contractual firm commitments. These underlying exposures have been substantially hedged.

(3)Includes net investment exposures in foreign operations. These underlying exposures have been hedged.

(4)Includes interest-bearing liabilities that have been hedged with cross-currency swaps and foreign exchange forwards. Refer to Note 5.3. Derivative and firm commitment assets and liabilities.

(5)Items on the statement of financial position are hedged by a portion of foreign exchange derivatives not designated in a hedge relationship and carried at fair value through profit and loss. Embedded derivatives are included in this line item.

Schedule Of Effects Of Hedge Accounting On The Financial Position And Performance

The effect of these programs on Nokia’s financial position and performance at 31 December:

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	2	5	(45)	(174)
Notional amount of hedging instruments	(968)	(1 166)	(1 354)	3 205
Notional amount of hedged items	968	1 166	1 354	(3 205)
Change in intrinsic value of hedging instruments since 1 January	22	132	40	89
Change in value of hedged items used to determine hedge effectiveness	(15)	(132)	(42)	(93)
2022
Carrying amount of hedging instruments	46	(9)	(145)	(247)
Notional amount of hedging instruments	(1 350)	(4 299)	(1 456)	3 438
Notional amount of hedged items	1 353	4 299	1 458	(3 438)
Change in intrinsic value of hedging instruments since 1 January	(12)	(126)	(111)	(265)
Change in value of hedged items used to determine hedge effectiveness	20	126	112	262

(1)No significant ineffectiveness has been recorded during the periods presented and economic relationships have been fully effective.

Schedule of VaR from financial instruments

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	72	67	18	—	38	40	33	—
Average for the year	32	25	23	—	31	36	48	—
Range for the year	19-72	12-67	9-40	0-0	12-67	17-59	31-70	0-0

Schedule of hedging instruments

To manage interest rate and foreign exchange risks related to Nokia’s interest-bearing liabilities, Nokia has designated the following cross-currency swaps as hedges under both fair value hedge

accounting and cash flow hedge accounting, and interest rate swaps as hedges under fair value hedge accounting at 31 December:

				Notional (million in currency)		Fair value EURm
Entity	Instrument	Currency	Maturity	2023	2022	2023	2022
Nokia Corporation	Interest rate swaps	EUR	3/2024	378	750	2	(12)
Nokia Corporation	Interest rate swaps	EUR	5/2025	292	500	—	(17)
Nokia Corporation	Interest rate swaps	EUR	3/2026	630	750	(13)	(34)
Nokia Corporation	Cross-currency swaps	USD	6/2027	500	500	(28)	(26)
Nokia Corporation	Interest rate swaps	EUR	5/2028	500	500	(13)	(36)
Nokia Corporation	Interest rate swaps	EUR	8/2031	500	—	20	—
Nokia Corporation	Cross-currency swaps	USD	5/2039	500	500	(116)	(97)
Total						(148)	(222)

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	(1)	0.8640	(219)	(63)	(156)	—	—
	USD	5	1.0881	(860)	(231)	(629)	—	—
	USD	(2)	1.0832	257	—	119	131	7
Net investment hedge accounting	CNY	4	7.8152	(788)	(788)	—	—	—
Fair value hedge accounting for FX risk	USD	(45)	1.1196	(1 354)	(427)	(301)	(616)	(10)
2022
Cash flow hedge accounting	GBP	5	0.8593	(235)	(76)	(159)	—	—
	JPY	5	138.8404	(235)	(66)	(169)	—	—
	USD	22	1.0394	(1 261)	(347)	(914)	—	—
	USD	12	1.0868	423	—	193	217	13
Net investment hedge accounting	CNY	(8)	7.4193	(866)	(866)	—	—	—
	USD	(3)	1.0563	(3 007)	(3 007)	—	—	—
Fair value hedge accounting for FX risk	USD	(145)	1.1358	(1 456)	(448)	(213)	(787)	(8)
(1) Negative notional amounts indicate that hedges sell currency, and positive notional amounts indicate that hedges buy currency.

Schedule of Interest rate profile of interest-bearing assets and liabilities

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	715	—	697	—
Current interest-bearing financial investments	510	1 055	912	2 168
Cash and cash equivalents	55	6 179	346	5 121
Interest-bearing liabilities	(3 483)	(708)	(3 658)	(819)
Financial assets and liabilities before derivatives	(2 203)	6 526	(1 703)	6 470
Interest rate derivatives	3 057	(3 057)	3 216	(3 216)
Financial assets and liabilities after derivatives	854	3 469	1 513	3 254
(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.

Schedule of sensitivity to interest rate exposure in the investment and debt portfolios.

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 100 basis points	(6)	3	1	(2)	3	(1)
Interest rates - decrease by 100 basis points	8	(4)	(1)	4	(2)	(1)

Schedule of outstanding fixed income and money market investments

Credit risk exposure by customer and country as % of total trade receivables and contract assets

as well as loans and loan commitments to customers:

Customer	2023	2022
Customer 1	12.2%	4.5%
Customer 2	3.6%	3.5%
Customer 3	3.4%	3.3%
Total	19.2%	11.3%
Country	2023	2022
Country 1(1)	19.0%	14.7%
Country 2	11.7%	10.8%
Country 3	6.1%	7.3%
Total	36.8%	32.8%

(1)

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	—	1 443	25	—	—	—	1 468
	AA+ - AA-	1 042	149	74	—	8	—	1 273
	A+ - A-	2 183	1 340	301	255	245	23	4 347
	BBB+ - BBB-	456	242	134	230	227	—	1 289
	Other	133	4	—	—	—	—	137
Total		3 814	3 178	534	485	480	23	8 514
2022	AAA	—	1 046	—	—	—	—	1 046
	AA+ - AA-	683	643	250	—	—	—	1 576
	A+ - A-	1 553	2 314	865	190	234	203	5 359
	BBB+ - BBB-	39	477	52	291	197	70	1 126
	Other	123	6	—	—	8	—	137
Total		2 398	4 486	1 167	481	439	273	9 244
(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 332 million (EUR 551 million in 2022) of instruments that have a call period of less than three months.

Schedule of financial assets and liabilities subject to offsetting under enforceable master netting agreements

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	131	(115)	(15)	1
Derivative liabilities	(285)	115	164	(6)
Total	(154)	—	149	(5)
2022
Derivative assets	182	(158)	(20)	4
Derivative liabilities	(496)	158	327	(11)
Total	(314)	—	307	(7)

Schedule of credit facilities and funding programs

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	1 500	—	—
Uncommitted	Finnish Commercial Paper Programme	EUR	750	—	—
Uncommitted	Euro-Commercial Paper Programme	EUR	1 500	—	—
Uncommitted	Euro Medium Term Note Programme(2)	EUR	5 000	2 300	2 500
Total				2 300	2 500
(1)The facility has its maturity in June 2026, except for EUR 88 million having its maturity in June 2024. (2)All euro-denominated bonds have been issued under the Euro Medium Term Note Programme.

Schedule of borrowing changes

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	4 249	228	246	1 042	5 765
Cash flows	(283)	(40)	(19)	(239)	(581)
Non-cash changes:
Changes in foreign exchange rates	(34)	(3)	25	(12)	(24)
Changes in fair value	83	—	(79)	—	4
Reclassification between long-term and short-term	(374)	374	—	—	—
Additions(3)	—	—	—	206	206
Other	(4)	(5)	1	—	(8)
31 December 2023	3 637	554	174	997	5 362
1 January 2022	4 537	116	53	1 009	5 715
Cash flows	(1)	27	7	(217)	(184)
Non-cash changes:
Changes in foreign exchange rates	69	1	(57)	8	21
Changes in fair value	(282)	—	243	—	(39)
Reclassification between long-term and short-term	(84)	84	—	—	—
Additions(3)	—	—	—	242	242
Other	10	—	—	—	10
31 December 2022	4 249	228	246	1 042	5 765
(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.

Schedule of undiscounted cash flow analysis for lease liabilities, financial liabilities and financial assets

The following table presents an undiscounted, contractual cash flow analysis for lease liabilities, financial liabilities and financial assets presented on the statement of financial position as well as

loan commitments given and obtained. The line-by-line analysis does not directly reconcile with the statement of financial position.

	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	—	—	394	385	—	779	5	7	376	275	104	767
Other non-current financial assets(1)	—	—	60	8	46	114	—	—	30	2	46	78
Current financial assets
Other current financial assets excluding derivatives(1)	216	31	—	—	—	247	207	77	—	—	—	284
Current interest-bearing financial investments(2)	998	595	—	—	—	1 593	2 146	946	—	—	—	3 092
Cash and cash equivalents(2)	6 017	52	30	138	26	6 263	4 947	31	136	200	195	5 509
Cash flows related to derivative financial assets net settled:
Derivative contracts – receipts	(7)	(2)	(11)	(12)	(10)	(42)	—	—	—	—	—	—
Cash flows related to derivative financial assets gross settled:
Derivative contracts – receipts	8 407	1 582	358	6	—	10 353	9 170	2 109	297	20	—	11 596
Derivative contracts – payments	(8 349)	(1 560)	(353)	(6)	—	(10 268)	(9 089)	(2 038)	(282)	(20)	—	(11 429)
Trade receivables	3 834	1 316	184	—	—	5 334	4 885	1 004	123	2	—	6 014
Non-current financial and lease liabilities
Long-term interest-bearing liabilities	(33)	(115)	(1 766)	(1 200)	(1 528)	(4 642)	(43)	(98)	(2 182)	(1 397)	(1 628)	(5 348)
Long-term lease liabilities	—	—	(353)	(199)	(304)	(856)	—	—	(340)	(200)	(327)	(867)
Other non-current financial liabilities	—	—	(11)	(11)	(11)	(33)	—	—	(17)	—	—	(17)
Current financial and lease liabilities
Short-term interest-bearing liabilities	(473)	(98)	—	—	—	(571)	(131)	(99)	—	—	—	(230)
Short-term lease liabilities	(44)	(179)	—	—	—	(223)	(61)	(162)	—	—	—	(223)
Other financial liabilities excluding derivatives(3)	(458)	(24)	—	—	—	(482)	(482)	(20)	—	—	—	(502)
Cash flows related to derivative financial liabilities net settled:
Derivative contracts - payments	(4)	(29)	(41)	(12)	—	(86)	5	(31)	(1)	7	7	(13)
Cash flows related to derivative financial liabilities gross settled:
Derivative contracts – receipts	6 475	1 322	735	541	767	9 840	8 832	1 271	919	573	826	12 421
Derivative contracts – payments	(6 553)	(1 353)	(806)	(551)	(858)	(10 121)	(8 992)	(1 303)	(1 003)	(542)	(778)	(12 618)
Discounts without performance obligations	(151)	(212)	(40)	(1)	—	(404)	(205)	(211)	(121)	(2)	—	(539)
Trade payables	(3 154)	(204)	(64)	—	(1)	(3 423)	(4 561)	(165)	(3)	—	(1)	(4 730)
Commitments given and obtained
Loan commitments given undrawn(4)	(1)	(4)	—	—	—	(5)	(13)	(13)	—	—	—	(26)
Loan commitments obtained undrawn(5)	(1)	86	1 408	—	—	1 493	(1)	(3)	80	1 410	—	1 486
(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 332 million (EUR 551 million in 2022) of instruments that have a call period of less than three months. (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.