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Risk management (Tables)
 12 Months Ended
Dec. 31, 2017
Risk management  
Schedule of hedged currency mix

 

 

 

 

 

 

 

 

 

EURm 

    

USD

    

JPY

    

CNY

    

INR

2017

 

  

 

  

 

  

 

  

Foreign exchange derivatives used as cash flow hedges, net(1)

 

(803)

 

(230)

 

 –

 

 –

Foreign exchange derivatives used as fair value hedges, net(2)

 

(84)

 

 –

 

 –

 

 –

Foreign exchange derivatives used as net investment hedges, net(3)

 

(2 839)

 

 –

 

(728)

 

(403)

Foreign exchange exposure from statement of financial position items, net

 

(3 365)

 

196

 

(765)

 

(352)

Foreign exchange derivatives not designated in a hedge relationship, carried at fair value through profit and loss, net(4)

 

1 777

 

(411)

 

577

 

446

Cross-currency/interest rate hedges

 

1 377

 

 –

 

 –

 

 –

2016

 

  

 

  

 

  

 

  

Foreign exchange derivatives used as cash flow hedges, net(1)

 

–

 

(158)

 

–

 

 –

Foreign exchange derivatives used as fair value hedges, net(2)

 

(397)

 

–

 

–

 

 –

Foreign exchange derivatives used as net investment hedges, net(3)

 

(1 418)

 

–

 

–

 

(104)

Foreign exchange exposure from statement of financial position items, net

 

(2 172)

 

434

 

(227)

 

(236)

Foreign exchange derivatives not designated in a hedge relationship, carried at fair value through profit and loss, net(4)

 

1 747

 

(174)

 

(587)

 

104

Cross-currency/interest rate hedges

 

1 051

 

(328)

 

–

 

–

 

(1)

Used to hedge the foreign exchange risk from forecasted highly probable cash flows related to sales, purchases and business acquisition activities. In some currencies, especially the U.S. dollar, the Group has substantial foreign exchange risks in both estimated cash inflows and outflows. The underlying exposures for which these hedges are entered into are not presented in the table as they are not financial instruments.

(2)

Used to hedge foreign exchange risk from contractual firm commitments. The underlying exposures for which these hedges are entered into are not presented in the table as they are not financial instruments.

(3)

Used to hedge net investment exposure. The underlying exposures for which these hedges are entered into are not presented in the table as they are not financial instruments.

(4)

Items on the statement of financial position and some probable forecasted cash flows denominated in foreign currencies are hedged by a portion of foreign exchange derivatives not designated in a hedge relationship and carried at fair value through profit and loss.
Schedule of VaR from financial instruments

 

 

 

 

 

 

    
2017

    
2016

EURm

 

VaR from financial instruments

As of December 31

 

144

 

83

Average for the year

 

205

 

111

Range for the year

 

144-267

 

73-149

 

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

 

 

 

 

 

 

 

 

 

 

 

2017

 

2016

EURm

    

Fixed rate

    

Floating rate(1)

    

Fixed rate

    

Floating rate(1)

Assets

 

889

 

7 581

 

2 107

 

7 410

Liabilities

 

(3 637)

 

(57)

 

(3 845)

 

(113)

Assets and liabilities before derivatives

 

(2 748)

 

7 524

 

(1 738)

 

7 297

Interest rate derivatives

 

1 371

 

(1 371)

 

1 358

 

(1 328)

Assets and liabilities after derivatives

 

(1 377)

 

6 153

 

(380)

 

5 969

 

(1)

All investments and credit support-related liabilities 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

2016

 

    

Impact on

    

Impact

    

Impact

    

Impact on

    

Impact

    

Impact

EURm

 

fair value

 

on profit

 

on OCI

 

fair value

 

on profit

 

on OCI

Interest rates – increase by 100 basis points

 

126

 

 2

 

(1)

 

181

 

(3)

 

(2)

Interest rates – decrease by 50 basis points

 

(67)

 

(1)

 

 –

 

(99)

 

 2

 

 1

 

Schedule of maximum exposure to credit risk

 

 

 

 

 

EURm

    
2017

    
2016

Loan commitments given but not used 

 

495

 

223

Outstanding customer finance loans(1) 

 

160

 

129

Total 

 

655

 

352

 

(1)

Includes acquired customer loans on a fair value basis. Excludes EUR 33 million (EUR 33 million in 2016) which are considered to be uncollectible and have been provisioned.
Schedule of aging of past due receivables not considered to be impaired

 

 

 

 

 

EURm

    
2017

    
2016

Past due 1-30 days

 

67

 

102

Past due 31-180 days

 

94

 

141

More than 180 days

 

117

 

223

Total

 

278

 

466

 

Schedule of outstanding fixed income and money-market investments by sector and credit rating grades ranked as per Moody's rating categories

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EURm

 

Rating(1)

 

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)(4)

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banks

 

Aaa

 

607

 

 –

 

 –

 

 –

 

 –

 

607

 

 

Aa1-Aa3

 

398

 

74

 

69

 

 –

 

 –

 

541

 

 

A1-A3

 

1 808

 

247

 

240

 

191

 

45

 

2 531

 

 

Baa1-Baa3

 

455

 

232

 

125

 

 –

 

 –

 

812

 

 

Ba1-B3

 

35

 

 –

 

 2

 

 –

 

 –

 

37

 

 

Non-rated

 

38

 

 –

 

 –

 

 –

 

 –

 

38

Governments

 

A1-A3

 

 1

 

 2

 

 –

 

 –

 

 –

 

 3

Other

 

Aa1-Aa3

 

24

 

10

 

39

 

 –

 

 –

 

73

 

 

A1-A3

 

10

 

53

 

78

 

 –

 

 –

 

141

Total

 

 

 

3 376

 

618

 

553

 

191

 

45

 

4 783

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banks

 

Aaa

 

1 054

 

 –

 

 –

 

 –

 

 –

 

1 054

 

 

Aa1-Aa3

 

410

 

201

 

35

 

 –

 

 –

 

646

 

 

A1-A3

 

1 405

 

211

 

387

 

116

 

 –

 

2 119

 

 

Baa1-Baa3

 

893

 

728

 

 –

 

 –

 

 –

 

1 621

 

 

Ba1-Ba3

 

15

 

 –

 

 –

 

 –

 

 –

 

15

 

 

Non rated

 

42

 

 –

 

 –

 

 –

 

 –

 

42

Governments

 

A1-A3

 

 –

 

 –

 

274

 

53

 

 –

 

327

Other

 

Aa1-Aa3

 

45

 

30

 

 1

 

 –

 

 –

 

76

 

 

A1-A3

 

52

 

61

 

13

 

 –

 

 –

 

126

 

 

Baa1-Baa3

 

 6

 

13

 

 5

 

 –

 

 –

 

24

Total

 

 

 

3 922

 

1 244

 

715

 

169

 

 –

 

6 050

 

(1)

Bank Parent Company ratings are used here for bank groups. In some emerging markets countries, actual bank subsidiary ratings may differ from the Parent Company rating.

(2)

Fixed income and money-market investments include term deposits, structured deposits, investments in liquidity funds and investments in fixed income instruments classified as available-for-sale investments and investments at fair value through profit and loss. Liquidity funds invested solely in government securities are included under Governments. Other liquidity funds are included under Banks.

(3)

Instruments that include a call feature have been presented at their final maturities, if any. Instruments that are contractually due beyond 3 months include EUR 701 million (EUR 566 million in 2016) of instruments that have a call period of less than 3 months.

(4)

Includes EUR 5 million of restricted investments (EUR 5 million in 2016) within fixed income and money-market investments. These are restricted financial assets under various contractual or legal obligations.
Schedule of financial assets and liabilities subject to offsetting under enforceable master netting agreements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Related amounts not set off in the
statement of financial position

 

 

EURm

 

Gross amounts of
financial assets/
(liabilities)

 

Gross amounts of
financial liabilities/
(assets) set off in the
statement of financial
position

 

Net amounts of financial
assets/ (liabilities) presented in the
statement of financial
position

 

Financial instruments
assets/(liabilities)

 

Cash collateral
received/(pledged)

 

Net amount

2017

 

 

 

 

 

 

 

 

 

 

 

 

Derivative assets

 

197

 

 –

 

197

 

135

 

38

 

24

Derivative liabilities

 

(268)

 

 –

 

(268)

 

(145)

 

(100)

 

(23)

Total

 

(71)

 

 –

 

(71)

 

(10)

 

(62)

 

 1

2016

 

 

 

 

 

 

 

 

 

 

 

 

Derivative assets

 

235

 

 –

 

235

 

153

 

73

 

 9

Derivative liabilities

 

(236)

 

 –

 

(236)

 

(128)

 

(96)

 

(12)

Total

 

(1)

 

 –

 

(1)

 

25

 

(23)

 

(3)

 

Schedule of current long-term funding programs

Issuer:

Program:

Issued

Nokia Corporation

Euro Medium-Term Note Program, totaling EUR 5 000 million

1 250

 

Significant current short-term funding programs as of December 31, 2017:

 

 

 

 

 

Issuer:

Program:

Issued

Nokia Corporation

Local commercial paper program in Finland, totaling EUR 750 million

-

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

EURm

 

Total

 

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

2017

 

 

 

 

 

 

 

 

 

 

 

 

Non-current financial assets

 

 

 

 

 

 

 

 

 

 

 

 

Long-term loans receivable

 

112

 

21

 

 –

 

77

 

 4

 

10

Current financial assets

 

 

 

 

 

 

 

 

 

 

 

 

Short-term loans receivable

 

92

 

 6

 

86

 

 –

 

 –

 

 –

Available-for-sale investments, including cash equivalents(1)

 

4 797

 

3 381

 

621

 

558

 

192

 

45

Bank and cash

 

3 497

 

3 497

 

 –

 

 –

 

 –

 

 –

Cash flows related to derivative financial assets gross settled:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative contracts ̶ receipts

 

11 484

 

10 249

 

1 235

 

 –

 

 –

 

 –

Derivative contracts ̶ payments

 

(11 330)

 

(10 108)

 

(1 222)

 

 –

 

 –

 

 –

Accounts receivable(2)

 

5 633

 

4 297

 

1 208

 

107

 

21

 

 –

Non-current financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Long-term interest-bearing liabilities

 

(4 657)

 

(44)

 

(95)

 

(938)

 

(1 098)

 

(2 482)

Other long-term liabilities

 

(754)

 

 –

 

 –

 

(748)

 

 –

 

(6)

Current financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

(313)

 

(215)

 

(98)

 

 –

 

 –

 

 –

Cash flows related to derivative financial liabilities gross settled:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative contracts ̶ receipts

 

10 278

 

8 265

 

280

 

573

 

486

 

674

Derivative contracts ̶ payments

 

(10 245)

 

(8 366)

 

(243)

 

(568)

 

(467)

 

(601)

Accounts payable

 

(3 996)

 

(3 731)

 

(251)

 

(9)

 

(3)

 

(2)

Contingent financial assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Loan commitments given undrawn(3)

 

(495)

 

(71)

 

(172)

 

(174)

 

(78)

 

 –

Loan commitments obtained undrawn(4)

 

1 566

 

(1)

 

(3)

 

1 570

 

 –

 

 –

 

(1)

Instruments that include a call feature have been presented at their final maturities, if any. Instruments that are contractually due beyond 3 months include EUR 701 million of instruments that have a call period of less than 3 months.

(2)

Accounts receivable maturity analysis does not include accrued receivables of EUR 1 247 million.

(3)

Loan commitments given undrawn have been included in the earliest period in which they could be drawn or called.

(4)

Loan commitments obtained undrawn have been included based on the period in which they expire. These amounts include related commitment fees.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EURm

    

Total

    

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

2016

 

  

 

  

 

  

 

  

 

  

 

  

Non-current financial assets

 

  

 

  

 

  

 

  

 

  

 

  

Long-term loans receivable

 

150

 

 –

 

 2

 

86

 

32

 

30

Current financial assets

 

  

 

  

 

  

 

  

 

  

 

  

Short-term loans receivable

 

62

 

32

 

28

 

 2

 

 –

 

 –

Investments at fair value through profit and loss

 

326

 

 –

 

 1

 

272

 

53

 

 –

Available-for-sale investments, including cash equivalents(1)

 

5 753

 

3 935

 

1 248

 

453

 

117

 

 –

Bank and cash

 

3 276

 

3 276

 

 –

 

 –

 

 –

 

 –

Cash flows related to derivative financial assets net settled:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative contracts ̶ receipts

 

42

 

18

 

(6)

 

30

 

 –

 

 –

Cash flows related to derivative financial assets gross settled:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative contracts ̶ receipts

 

8 221

 

6 473

 

492

 

1 038

 

13

 

205

Derivative contracts ̶ payments

 

(7 942)

 

(6 404)

 

(440)

 

(962)

 

(5)

 

(131)

Accounts receivable(2)

 

5 895

 

4 430

 

1 354

 

106

 

 5

 

 –

Non-current financial liabilities

 

  

 

  

 

  

 

  

 

  

 

  

Long-term interest-bearing liabilities

 

(5 807)

 

(85)

 

(140)

 

(1 955)

 

(269)

 

(3 358)

Current financial liabilities

 

  

 

  

 

  

 

  

 

  

 

  

Short-term borrowings

 

(372)

 

(255)

 

(116)

 

(1)

 

 –

 

 –

Cash flows related to derivative financial liabilities gross settled:

 

  

 

  

 

  

 

  

 

  

 

  

Derivative contracts ̶ receipts

 

8 948

 

7 727

 

925

 

248

 

48

 

 –

Derivative contracts ̶ payments

 

(9 187)

 

(7 867)

 

(995)

 

(272)

 

(53)

 

 –

Accounts payable

 

(3 781)

 

(3 600)

 

(152)

 

(29)

 

 –

 

 –

Contingent financial assets and liabilities

 

  

 

  

 

  

 

  

 

  

 

  

Loan commitments given undrawn(3)

 

(223)

 

(30)

 

(83)

 

(110)

 

 –

 

 –

Loan commitments obtained undrawn(4)

 

1 564

 

(1)

 

(3)

 

1 568

 

 –

 

 –

 

(1)

Instruments that include a call feature have been presented at their final maturities, if any. Instruments that are contractually due beyond 3 months included EUR 566 million of instruments that have a call period of less than 3 months in 2016.

(2)

Accounts receivable maturity analysis did not include accrued receivables of EUR 1 077 million.

(3)

Loan commitments given undrawn have been included in the earliest period in which they could be drawn or called.

Loan commitments obtained undrawn have been included based on the period in which they expire. These amounts include related commitment fees.