Espoo, Finland – As previously stated, Nokia’s financial outlook for 2023 assumes the closure of outstanding license renewals in Nokia Technologies. The company no longer expects these negotiations to conclude before year-end with resolution now expected to occur in 2024 and therefore benefit Nokia’s financial performance in 2024 (including associated catch-up payments). While there have been intense negotiations between the relevant parties and courts around the world have found in Nokia’s favor, the company will prioritize protecting the value of its patent portfolio versus achieving certain timelines for resolution.

Given this development combined with continued customer spending constraint in the quarter, Nokia now expects it will not achieve its financial outlook for the full year 2023 in relation to net sales, comparable operating margin and free cash flow.

As the financial period is not concluded – Nokia is not in a position to provide preliminary financial results and will report its fourth quarter and full year 2023 financial results on 25 January 2024.

Regarding the Q4 2023 performance to date of Nokia’s networks businesses*, net sales are expected to demonstrate a significant improvement sequentially. The quarter has proved somewhat more challenging than expected given on-going customer spending constraint and the recently communicated customer purchasing decision. Profitability in Nokia’s networks businesses is however expected to remain solidly within the comparable operating margin assumptions the company had previously communicated.

Within its Nokia Progress Update on 12 December 2023, the company provided initial planning assumptions for each of its units in 2024 which remain unchanged. The company has seen clearly improving order trends in the fourth quarter, particularly in Network Infrastructure, that support the assumptions. Nokia will provide a group financial outlook for 2024 with its fourth quarter results on 25 January 2024.

* Nokia’s networks businesses include Network Infrastructure, Mobile Networks, and Cloud and Network Services.

About Nokia

At Nokia, we create technology that helps the world act together.

As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs.

Service providers, enterprises and partners worldwide trust Nokia to deliver secure, reliable and sustainable networks today – and work with us to create the digital services and applications of the future.