Nokia Corporation Financial Report for Q4 and full year 2022

• Q4 net sales grew 11% y-o-y in constant currency (16% reported). Full year net sales grew 6% (12% reported).
• In Q4 Network Infrastructure grew net sales 14% in constant currency with all units contributing. Mobile Networks grew 3% with a meaningful shift in regional mix in the quarter while Cloud and Network Services grew 5%. Nokia Technologies grew 82% as a long-term licensee exercised an option leading to higher revenue recognition in Q4.
• Enterprise net sales grew 49% y-o-y in constant currency in Q4 (55% reported); 21% in full year 2022 (27% reported).
• Q4 comparable gross margin +340bps y-o-y to 43.5% (reported +330bps to 42.8%), with 240bps of expansion related to the Nokia Technologies option exercise. Comparable operating margin +130bps to 15.5% (reported +30bps to 11.8%).
• Q4 operating margin improved y-o-y due to the combination of the exercised option in Nokia Technologies and stronger margin in Network Infrastructure offsetting declines in Mobile Networks (regional mix shift) and greater losses in Group Common and Other primarily related to the strong venture fund performance in the prior year.
• Re-recognized deferred tax asset of EUR 2.5bn in Q4 which boosted reported net profit and EPS.
• Q4 comparable diluted EPS of EUR 0.16; reported diluted EPS of EUR 0.56. Full year EUR 0.44 and EUR 0.75 respectively.
• Q4 free cash flow positive EUR 0.4bn, net cash balance of EUR 4.8bn. Full year free cash flow EUR 0.8bn.
• Board proposes dividend authorization of EUR 0.12 per share.
• Nokia expects 2023 full year net sales of between EUR 24.9bn to 26.5bn, comparable operating margin between 11.5 to 14.0% and Free Cash Flow conversion from comparable operating profit of 20 to 50%.

Full press release

Proposals of the Board to Nokia’s Annual General Meeting 2023 – proposed that the Board be authorized to distribute an aggregate maximum of EUR 0.12 per share and that Timo Ahopelto and Elizabeth Crain be elected as new Board members