Related party transactions

12 Months Ended

Dec. 31, 2024

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 and balances with associated companies and joint ventures

Investments in associated companies and joint ventures are individually immaterial. The

aggregate carrying amount for the investments in associated companies and joint venture was

EUR 124 million in 2024 (EUR 88 million in 2023).

On December 2024, Nokia completed the sale of Alcatel Submarine Networks (ASN) to the

French State. Nokia retained a 20% shareholding with board representation to ensure a smooth

transition until targeted exit, at which point it is planned for the French State to acquire Nokia’s

remaining interest. The retained interest is accounted for as an investment in an associate.

Refer to Note 2.6. Discontinued operations for more information on disposal of the Submarine

Networks business.

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

associated companies and joint ventures. In 2024, TD Tech HK completed the divestment

of the entire business of the joint venture through the sale of its operating subsidiaries to a

consortium consisting of Huawei Technologies, Chengdu High-tech Investment Group and other

buyers. Following the divestment, Nokia is in the process of exiting from its shareholding in

the parent company TD Tech HK. Nokia considered the transactions as a sale of associated

companies and joint ventures, recorded a gain of EUR 191 million related to the sale and

received a cash consideration of EUR 248 million from the sale in 2024.

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 10 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.

Transactions with pension funds

Nokia has borrowings of EUR 35 million (EUR 37 million in 2023) from Nokia’s German pension

fund, a separate legal entity. The indefinite loan bears 6% annual interest and can be terminated

by either party 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 2024, 2023 or 2022. For information on remuneration of Nokia’s key management

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