Nokia Corporation Financial Report for Q4 and Full Year 2020

Nokia Corporation Financial Report for Q4 and Full Year 2020

Solid margin performance driven by customer demand in North America

• 5% year-on-year decrease in reported net sales in Q4, primarily due to Mobile Access, as declines in network deployment and planning services were partially offset by growth in radio access products
• 1% growth in constant currency net sales in Q4
• Continued improvements in our Mobile Access portfolio; strengthening roadmaps, reducing product costs and improving product performance; commitment to invest in R&D to drive product leadership
• Increase in Mobile Access gross margin in Q4, primarily driven by improved 5G gross margin, partially offset by a project-related loss provision
• Positive operating profit, on a reported basis, in Q4 and full year 2020
• Non-IFRS operating profit in Q4 benefited by approximately EUR 250 million, due to the timing of revenue recognition and a net positive fluctuation in Nokia’s venture fund investments
• Strong free cash flow in Q4 and full year 2020 benefited from an early customer payment of approximately EUR 0.5 billion, which was expected in Q1 2021
• Derecognized EUR 2.9 billion of Finnish deferred tax assets, which are not lost
• Reiterated outlook for 2021 comparable operating margin of 7-10% and provided new outlook for net sales and free cash flow
• Board does not propose a dividend or dividend authorization for the financial year 2020

This is a summary of the Nokia Corporation financial report for Q4 and full year 2020 published today. The complete financial report for Q4 and full year 2020 with tables is available at www.nokia.com/financials. Investors should not rely on summaries of our financial reports only, but should review the complete financial reports with tables.

Full press release (ENG)

Proposals of the Board of Directors to Nokia Corporation’s Annual General Meeting 2021