Related party transactions

12 Months Ended

Dec. 31, 2025

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 6.3. 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 ventures was EUR 180

million in 2025 (EUR 124 million in 2024).

In 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 would

expire by March 2026. In October 2025, Nokia and HMD agreed to extend the license period for the

Nokia-branded feature phones until March 2029 for limited countries. 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 34 million (EUR 35 million in 2024) 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

2025, 2024 or 2023. For information on remuneration of Nokia’s key management personnel, refer

to Note 3.2. Remuneration of key management.