Segment information

12 Months Ended

Dec. 31, 2024

Disclosure of operating segments [abstract]

Segment information

2.2. Segment information

Accounting policies

Nokia has four operating and reportable segments for

financial reporting purposes: (1) Network Infrastructure,

(2) Mobile Networks, (3) Cloud and Network Services

and (4) Nokia Technologies. In addition, Nokia provides

net sales disclosure for the following business units

within the Network Infrastructure segment: (i) IP Networks,

(ii) Optical Networks and (iii) Fixed Networks.

The President and CEO is the chief operating decision-

maker monitoring the operating results of segments

for the purpose of assessing performance and making

decisions about resource allocation. Key financial

performance measures of the segments comprise

primarily net sales and segment operating profit.

The evaluation of segment performance and allocation

of resources is primarily based on segment operating

profit which the management believes is the most

relevant measure for this purpose. Segment operating

profit excludes intangible asset amortization and

other purchase price fair value adjustments, goodwill

impairments, restructuring-related charges and certain

other items of income and expenses that may not be

indicative of the business operating results.

Accounting policies of the segments are the same as

those for the Group except for the aforementioned

items of income and expenses that are not allocated to

the segments. Inter-segment revenues and transfers are

accounted for as if the revenues were to third parties,

that is, at current market prices.

Segment descriptions

Network Infrastructure

The Network Infrastructure segment serves communications

service providers, enterprises, webscales and public sector

customers. It comprises the following business units:

(i) IP Networks, which provides IP networks and services

for residential, mobile, enterprise and cloud applications;

(ii) Optical Networks, which provides optical transport

networks for metro, regional and long-haul applications

(iii) Fixed Networks, which provides fiber, fixed wireless access

and copper technologies.

The results of the Submarine Networks business, which were

previously reported as part of Network Infrastructure operating

segment, are presented in discontinued operations in these

consolidated financial statements. For more information on

discontinued operations, refer to Note 2.6. Discontinued

operations.

Mobile Networks

The Mobile Networks segment creates products and services

covering all mobile technology generations. Its portfolio

includes products for radio access networks (RAN) and

microwave radio (MWR) links for transport networks, and

solutions for network management, as well as network

planning, optimization, network deployment and technical

support services.

Cloud and Network Services

Cloud and Network Services segment provides open, fully

automated, and scalable software and solutions that accelerate

the journey of service providers and enterprises to

autonomous networks and new value creation.

Cloud and Network Services segment invests in technologies

that are critical to our customers’ growth: 5G core, secure

autonomous networks, private wireless and industrial edge,

and network APIs. Delivered in a secure, Software-as-a-Service

first model, these solutions help customers capture the

opportunities of digitalization, AI and cloud.

Nokia Technologies

Nokia Technologies segment monetizes Nokia’s intellectual

property, including patents, technologies and the Nokia brand,

building on Nokia’s continued innovation leadership, long-term

investment into research and development, and decades of

driving technology standards development. The majority of net

sales and related costs and expenses attributable to licensing

and patenting the patent portfolio of Nokia is recorded in

Nokia Technologies, while each segment separately records

its own research and development expenses.

Group Common and Other

Despite not being a reportable segment, Nokia also provides

segment-level information for Group Common and Other.

Group Common and Other includes Radio Frequency Systems

which had been managed as a separate entity and was

substantially divested in 2024. In addition, Group Common and

Other includes certain corporate-level and centrally managed

operating expenses, as well as fair value gains and losses on

investments in venture funds, including investments managed

by NGP Capital.

Segment results

EURm	Network Infrastructure(1)	Mobile Networks	Cloud and Network Services	Nokia Technologies	Group Common and Other	Eliminations and unallocated items(2)	Nokia Group
2024
Net sales to external customers	6 517	7 721	3 021	1 928	33	—	19 220
Net sales to other segments	1	4	1	—	1	(7)	—
Operating profit/(loss)	761	409	249	1 514	(314)	(620)	1 999
Share of results of associated companies and joint ventures	—	1	7	(1)	—	—	7
Financial income and expenses							85
Profit before tax							2 091
Other segment items
Depreciation and amortization	(167)	(369)	(75)	(32)	(16)	(314)	(973)
2023
Net sales to external customers	6 919	9 791	3 219	1 085	124	—	21 138
Net sales to other segments	(2)	6	1	—	6	(11)	—
Operating profit/(loss)	1 016	723	255	734	(391)	(676)	1 661
Share of results of associated companies and joint ventures	—	(30)	7	12	—	(28)	(39)
Financial income and expenses							(153)
Profit before tax							1 469
Other segment items
Depreciation and amortization	(171)	(366)	(81)	(39)	(14)	(341)	(1 012)
2022
Net sales to external customers	7 894	10 658	3 350	1 583	276	—	23 761
Net sales to other segments	3	13	1	12	19	(48)	—
Operating profit/(loss)	1 069	940	177	1 208	(318)	(777)	2 299
Share of results of associated companies and joint ventures	—	(11)	6	(8)	—	(13)	(26)
Financial income and expenses							(104)
Profit before tax							2 169
Other segment items
Depreciation and amortization	(176)	(347)	(91)	(34)	(28)	(397)	(1 073)

(1)Includes IP Networks net sales of EUR 2 583 million (EUR 2 606 million in 2023 and EUR 3 063 million in 2022), Optical Networks net sales of EUR 1 636 million (EUR 1 942 million

in 2023 and EUR 1 891 million in 2022) and Fixed Networks net sales of EUR 2 299 million (EUR 2 369 million in 2023 and EUR 2 943 million in 2022).

(2)Unallocated items comprise costs related to intangible asset amortization, restructuring-related charges, divestments of businesses and associates,  impairments and certain

other items.

Material reconciling items between total segment

operating profit and operating profit for the Group

EURm	2024	2023	2022
Total segment operating profit	2 619	2 337	3 076
Restructuring and associated charges	(445)	(356)	(177)
Amortization of acquired intangible assets	(314)	(341)	(397)
Divestment of associates	190	—	—
Impairment and write-off of assets, net of reversals	(89)	(25)	(97)
Divestment of businesses	67	20	—
Costs associated with country exit	—	49	(98)
Other	(29)	(23)	(8)
Operating profit for the Group	1 999	1 661	2 299

Information by geographies and customer

concentration

Net sales to external customers by country

EURm	2024	2023	2022
Finland	2 060	1 192	1 697
United States	5 032	5 328	7 911
India	1 366	2 832	1 280
France	751	750	788
Other	10 011	11 036	12 085
Total	19 220	21 138	23 761

Net sales to external customers by country are based on the

location of the customer, except for Nokia Technologies IPR

and licensing net sales which are allocated to Finland.

Major customers

As is typical for our industry, Nokia’s net sales are largely driven

by multi-year customer agreements with a limited number of

significant customers. In 2024 and in 2023, no single customer

represented more than 10% of net sales. In 2022, net sales to

the largest customer were 11% of net sales to external

customers. Net sales to the largest customer were reported by

Network Infrastructure, Mobile Networks and Cloud and

Network Services, as well as Group Common and Other.

Non-current assets by country

EURm	2024	2023
Finland	1 476	1 549
United States	4 493	4 383
France	1 647	2 139
Other	1 042	1 376
Total	8 658	9 447

Non-current assets consists of goodwill, other intangible

assets, property, plant and equipment and right-of-use assets.