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Nokia provides recast comparative quarterly financial information reflecting the transfer of Managed Services business from Cloud and Network Services to Mobile Networks

1. Nokia transferred Managed Services from Cloud to Mobile Networks effective January 2025. 2. This move aligns Managed Services better with Mobile Networks' growth strategy. 3. Q4 2024 showed strong performance in Mobile Networks, boosting profit margins. 4. Cloud Services reported lower profits and margins compared to Mobile Networks. 5. Reorganization aims to enhance Nokia’s focus on network monetization and efficiency.

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Why Bullish?

The strategic shift towards Mobile Networks, which showed solid financial performance, suggests growth potential. Previous transitions in Nokia's business segments, like the 2021 Cloud shift, often led to improved operational metrics.

How important is it?

The reorganization is a substantial shift that impacts Nokia's revenue structure and growth trajectory in Mobile Networks, directly affecting investor sentiment and market performance.

Why Long Term?

This reorganization should serve Nokia's long-term strategy in mobile networks as they expand into new revenue opportunities. Historical transitions, such as the integration of Cloud services, took time to realize significant impacts.

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Nokia Corporation Stock Exchange Release20 March 2025 at 18:00 EET Nokia provides recast comparative quarterly financial information reflecting the transfer of Managed Services business from Cloud and Network Services to Mobile NetworksNokia today provided recast comparative financial information for Mobile Networks and Cloud and Network Services segments for Q1-Q4 2024 reflecting the transfer of the Managed Services business. Managed Services business transferred from Cloud and Network Services into Mobile Networks in 2025Effective 1 January 2025, Nokia moved its Managed Services business into its Mobile Networks business group. The Managed Services business provides outsourced network management of multi-vendor RAN networks for operators and, since 2021, has been part of Nokia’s Cloud and Network Services business group. As the Cloud and Network Services business group is increasingly transitioning towards cloud-native software sales, 'as-a-service' product offerings and helping customers to monetize networks through API's, Nokia believes that Managed Services is more aligned and fits better with its Mobile Networks business group. To provide a basis for comparison, the following tables present summarized income statement information for Cloud and Network Services and Mobile Networks on an unaudited basis for all quarters and the full year of 2024, reflecting the transfer of the Managed Services business. Mobile Networks  EUR million Q1'24 Q2'24 Q3'24 Q4'24 Q1-Q4'24 Net sales 1 682 2 078 1 854 2 545 8 159 Gross profit 688 868 713 950 3 219 Gross margin % 40.9%         41.8%                 38.5%                 37.3%         39.5% Research and development expenses (544) (538) (520) (558) (2 160) Selling, general and administrative expenses (180) (191) (182) (203) (756) Other operating income and expenses 4 43 91 12 149 Operating profit/(loss) (32) 182 101 201 452 Operating margin % (1.9)%         8.8%                 5.4%                 7.9%         5.5% Other segment items           Depreciation and amortization (92) (99) (92) (94) (377) Cloud and Network Services  EUR million Q1'24 Q2'24 Q3'24 Q4'24 Q1-Q4'24 Net sales 546 507 595 940 2 589 Gross profit 215 190 269 483 1 157 Gross margin % 39.4%         37.5%                 45.2%                 51.4%         44.7% Research and development expenses (140) (139) (130) (141) (550) Selling, general and administrative expenses (113) (105) (105) (121) (444) Other operating income and expenses 1 19 23 1 43 Operating profit/(loss) (37) (35) 56 222 206 Operating margin % (6.8)% (6.9)%         9.4%                 23.6%         8.0% Other segment items           Depreciation and amortization (17) (16) (16) (17) (67) 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, which is celebrating 100 years of innovation.With truly open architectures that seamlessly integrate into any ecosystem, our high-performance networks create new opportunities for monetization and scale. 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.Inquiries: NokiaCommunicationsPhone: +358 10 448 4900Email: press.services@nokia.comMaria Vaismaa, Global Head of External CommunicationsNokia Investor RelationsPhone: +358 931 580 507Email: investor.relations@nokia.com EN Web tables Recast MN and CNS

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