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NOK Nokia

Filed: 29 Jul 21, 8:21am

 

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

Report of Foreign Private Issuer

Pursuant to Rule 13a -16 or 15d -16 of

the Securities Exchange Act of 1934

 

Report on Form 6-K dated July 29, 2021

(Commission File No. 1-13202)

 

Nokia Corporation

Karakaari 7A

FI-02610 Espoo

Finland

 

(Name and address of registrant’s principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
   
Form 20-Fx Form 40-F: ¨
   
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
 
Yes: ¨ Nox
   
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
 
Yes: ¨ Nox
   
Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
   
Yes: ¨ Nox

 

 

 

 

 

 

Enclosures:

 

·Stock Exchange Release: Nokia Corporation Financial Report for Q2 and Half Year 2021

·Report attached to stock exchange release: Report for Q2 and Half Year 2021

 

 

 

 

Stock exchange release1  (6)
   
 29 July 2021 

 

Nokia Corporation 

Half year report
29 July 2021 at 08:00 EET

 

Nokia Corporation Financial Report for Q2 and Half Year 2021

 

Strong first half, 2021 Outlook revised upwards

 

·Top-line strength continued in Q2, with constant currency net sales up 9% year-on-year, driven by growth across all business groups, with particular strength in Network Infrastructure. Reported net sales increased 4%.

 

·Important progress on our three-phased strategy. Mobile Networks strengthening its competitiveness with major product launch, including some industry leading features. Network Infrastructure continued to gain share in the first half.

 

·Our new operating model is delivering clear accountability and financial discipline through the organization.

 

·Comparable gross margin of 42.3% (reported 41.0%) in Q2, reflecting broad improvements, particularly in Mobile Networks, which benefitted from a one-time software deal and 5G growth.

 

·Comparable operating margin of 12.8% (reported 9.1%) in Q2, with improvements across all business groups, also helped by the one-time software deal in Mobile Networks.

 

·Q2 comparable diluted EPS of EUR 0.09; reported diluted EPS of EUR 0.06.

 

·Generated positive free cash flow for the fifth quarter in a row; liquidity position remains solid with EUR 3.7bn net cash.

 

·Strong performance in first half 2021 with 9% constant currency sales growth (reported net sales +4%) and comparable operating margin of 11.9% (reported 8.8%), driving increase in our full year Outlook although headwinds remain for the second half.

 

·Considering our strong start to 2021, we revise our full year 2021 Outlook, including net sales expected to be EUR 21.7bn to 22.7bn (previously EUR 20.6bn to EUR 21.8bn) with comparable operating margin in the range of 10-12% (previously 7-10%).

 

This is a summary of the Nokia Corporation Financial Report for Q2 and Half Year 2021 published today. Nokia only publishes a summary of its financial reports in stock exchange releases. The summary focuses on Nokia Group's financial information as well as on Nokia's outlook. The detailed, segment-level discussion will be available in the complete financial report hosted at www.nokia.com/financials. Investors should not solely rely on summaries of Nokia's financial reports, but should also review the complete reports with tables.

 

 

 

 

Stock exchange release2  (6)
   
 29 July 2021 

 

PEKKA LUNDMARK, PRESIDENT AND CEO, ON Q2 2021 RESULTS

 

I am delighted that our strong start to 2021 continued in the second quarter. Our constant currency sales growth of 9%, combined with good cost control, enabled us to deliver a comparable operating margin of 12.8%. Even excluding a one-time software deal in Mobile Networks, we saw good underlying progress in operating margin. We are already seeing the benefits of our new operating model which helped us to deliver such a strong financial performance.

 

The highlight of the second quarter was the Mobile Networks launch of our new AirScale baseband and radio products with up to 75% better power efficiency helping to reduce our environmental footprint and the lightest 32TRX massive MIMO active antenna in the market. In Network Infrastructure we sustained double-digit growth and have a series of product launches ahead in the second half to further strengthen our differentiation. Cloud and Network Services is making good progress on its portfolio rebalancing and Nokia Technologies continues to scale with two licensing agreements with automotive manufacturers including Daimler.

 

Considering our robust start to 2021, we are revising upwards our full year Outlook. We now expect a comparable operating margin between 10-12% for full year 2021, compared to our previous range of 7-10%. We have executed faster than planned on our strategy in the first half which provides us with a good foundation for the full year. We still however expect to face the earlier communicated headwinds in the second half, particularly with market share loss and price erosion in North America. Therefore, we still expect our typical quarterly earnings seasonality to be less pronounced in 2021. In addition, we continue to accelerate R&D investments and monitor risks around component availability, considering the strong demand for our products.

 

Overall, I am very happy with the progress made in the first half. I want to thank our entire team for their hard work and commitment.

 

 

 

 

 

Stock exchange release (6)
    
    
 
29 July 2021
  

 

FINANCIAL RESULTS

 

EUR million (except for EPS in EUR) Q2'21  Q2'20  YoY
change
  Constant currency
YoY
change
  Q1–
Q2'21
  Q1–
Q2'20
  YoY
change
  Constant currency
YoY
change
 
Reported results                        
Net sales  5 313   5 092   4%  9%  10 389   10 005   4%  9%
Gross margin %1  41.0%  38.1%  290bps      39.5%  36.8%  270bps    
Research and development expenses1  (1 063)  (1 013)   5%      (2 060)  (2 019)   2%    
Selling, general and administrative expenses1  (712)  (709)  0%      (1 360)  (1 489)   (9)%    
Operating profit  484   170   185%      916   94   874%    
Operating margin %  9.1%  3.3%  580bps      8.8%  0.9%  790bps    
Profit/(loss) for the period  351   99   255%      614   (17)        
EPS, diluted  0.06   0.02   200%      0.11   0.00         
Net cash and current financial investments  3 688   1 550   138%      3 688   1 550   138%    
Comparable results                                
Net sales  5 313   5 093   4%  9%  10 389   10 007   4%  9%
Gross margin %  42.3%  39.6%  270bps      40.3%  38.0%  230bps    
Research and development expenses  (1 011)  (953)  6%      (1 985)  (1 928)   3%    
Selling, general and administrative expenses  (585)  (590)  (1)%      (1 137)  (1 262)   (10)%    
Operating profit  682   423   61%      1 234   539   129%    
Operating margin %  12.8%  8.3%  450bps      11.9%  5.4%  650bps    
Profit for the period  539   316   71%      914   348   163%    
EPS, diluted  0.09   0.06   50%      0.16   0.06   167%    
ROIC2  18.4%  11.4%  700bps                    

 
1In Q4 2020, Nokia reclassified certain items of income and expenses from other operating income and expenses to the functions. The comparative reported results for Q2’20 and Q1-Q2'20 have been recast accordingly. Refer to Note 1, Basis of preparation, in the Financial statement information section included in Nokia Corporation Financial Report for Q2 and Half Year 2021 for details.

 

2Comparable ROIC = Comparable operating profit after tax, last four quarters / invested capital, average of last five quarters’ ending balances. Refer to Note 10, Performance measures, in the Financial statement information section included in Nokia Corporation Financial Report for Q2 and Half Year 2021 for details.

 

Reconciliation of reported operating profit to comparable operating profit

 

EUR million  Q2'21   Q2'20   YoY
change
   Q1–
Q2'21
   Q1–
Q2'20
   YoY
change
 
Reported operating profit  484   170   185%  916   94   874%
Restructuring and associated charges  141   130       177   217     
Amortization of acquired intangible assets  97   106       194   207     
Settlement of legal disputes  (80)  0       (80)  0     
Impairment of assets, net of impairment reversals  32   19       33   20     
Other, net  8   (2)      (6)  1     
Comparable operating profit  682   423   61%  1 234   539   129%

 

OUTLOOK

 

 Full year 2021Full year 2023
Net sales1EUR 21.7 billion to EUR 22.7 billion
(adjusted from EUR 20.6 to 21.8bn)
Grow faster than the market
Comparable operating margin210 to 12% (adjusted from 7 to 10%)10 to 13%
Free cash flow3Clearly positive (adjusted from positive)Clearly positive
Comparable ROIC2,417 to 21% (adjusted from 10 to 15%)15 to 20%

 

 

 

 

Stock exchange release (6)
    
    
 
29 July 2021
  

 

1) Assuming actual currency rates for first half 2021 and end of June EUR/USD rate of 1.19 continues in the second half 2021 (this is adjusted from our previous guidance based on the year-end 2020 EUR/USD rate of 1.23).

2) Comparable measures exclude intangible asset amortization and other purchase price fair value adjustments, goodwill impairments, restructuring related charges and certain other items affecting comparability. Refer to Note 10, Performance measures, in the Financial statement information section included in Nokia Corporation Financial Report for Q2 and Half Year 2021 for details.

3) Free cash flow = net cash from/(used in) operating activities - capital expenditures + proceeds from sale of property, plant and equipment and intangible assets – purchase of non-current financial investments + proceeds from sale of non-current financial investments..

4) Comparable ROIC = comparable operating profit after tax, last four quarters / invested capital, average of last five quarters’ ending balances. Refer to Note 10, Performance measures, in the Financial statement information section included in Nokia Corporation Financial Report for Q2 and Half Year 2021 for details.

 

OUTLOOK ASSUMPTIONS

 

·Nokia’s outlook assumptions for the comparable operating margin of each business group in 2021 and 2023 are provided below (updated):

 

  Full year 2021   Full year 2023 
Mobile Networks 4 to 7%  5 to 8%
Network Infrastructure 8 to 11%  9 to 12%
Cloud and Network Services 3 to 6%  8 to 11%
Nokia Technologies >75%  >75%

 

·We continue to maintain our expectation for Nokia Technologies to deliver a slight improvement in comparable operating profit in full year 2021, relative to full year 2020, and stable performance over the longer-term;

·Group Common and Other primarily consists of support function costs. We expect the net negative impact of Group Common and Other to be approximately EUR 200 million in 2021 and over the longer-term;

·In full year 2021, Nokia expects the free cash flow performance of Nokia Technologies to be approximately EUR 600 million lower than its operating profit, primarily due to prepayments we received from certain licensees;

·Comparable financial income and expenses are expected to be an expense of approximately EUR 200 million in full year 2021 and EUR 250 million over the longer-term (updated);

·Comparable income tax expenses are expected to be approximately EUR 450 million in full year 2021 and over the longer-term, subject to regional profit mix, net sales subject to withholding tax and the timing of patent licensing cash flow;

·Cash outflows related to income taxes are expected to be approximately EUR 350 million in full year 2021 and over the longer-term until our US or Finnish deferred tax assets are fully utilized;

·Capital expenditures are expected to be approximately EUR 650 million in full year 2021 and EUR 600 million over the longer-term (updated); and

·Rule of thumb related to currency fluctuations: Assuming our current mix of net sales and total costs (refer to Note 1, Basis of Preparation, in the Financial statement information section included in Nokia Corporation Financial Report for Q2 and Half Year 2021 for details), we expect that a 10% increase in the EUR/USD exchange rate would have an impact of approximately negative 4 to 5% on net sales and an approximately neutral impact on operating profit.

 

 

 

 

Stock exchange release (6)
    
    
 
29 July 2021
  

 

RISK FACTORS

 

Nokia and its business are exposed to a number of risks and uncertainties which include but are not limited to:

·Competitive intensity, which is particularly impacting Mobile Networks and is expected to continue at a high level in full year 2021, as some competitors seek to take share in the early stages of 5G;

·Our ability to accelerate our product roadmaps and cost competitiveness through additional 5G investments in full year 2021, thereby enabling us to drive product cost reductions and maintain the necessary scale to be competitive;

·Some customers are reassessing their vendors in light of security concerns, creating near-term pressure to invest in order to secure long-term benefits;

·Developments in North America following the conclusion of the C-band auction, including the potential for temporary capital expenditure constraints or the acceleration of 5G deployments;

·The scope and duration of the COVID-19 impact, particularly in certain countries, including India, where the pandemic has worsened, and the pace and shape of the economic recovery following the pandemic;

·Our ability to procure certain standard components and the costs thereof, such as semiconductors;

·The timing of completions and acceptances of certain projects;

·Our product and regional mix;

·Macroeconomic, industry and competitive dynamics;

·The timing and value of new and existing patent licensing agreements with smartphone vendors, automotive companies and consumer electronics companies;

·Results in brand and technology licensing; costs to protect and enforce our intellectual property rights; and the regulatory landscape for patent licensing;

as well as the risk factors specified under Forward-looking Statements of this release, and our 2020 annual report on Form 20-F published on March 4, 2021 under Operating and financial review and prospects-Risk factors.

 

FORWARD-LOOKING STATEMENTS

 

Certain statements herein that are not historical facts are forward-looking statements. These forward-looking statements reflect Nokia's current expectations and views of future developments and include statements regarding: A) expectations, plans, benefits or outlook related to our strategies, product launches, growth management and operational key performance indicators; B) expectations, plans or benefits related to future performance of our businesses (including the expected impact, timing and duration of that impact of COVID-19 on our businesses, our supply chain and our customers’ businesses) and any future dividends; C) expectations and targets regarding financial performance, cash generation, results, the timing of receivables, operating expenses, taxes, currency exchange rates, hedging, cost savings, product cost reductions and competitiveness, as well as results of operations including targeted synergies, better commercial management and those results related to market share, prices, net sales, income and margins; D) ability to execute, expectations, plans or benefits related to changes in organizational and operational structure and cash or cost savings arrangements; and (E) any statements preceded by or including "continue", “believe”, “commit”, “estimate”, “expect”, “aim”, “influence”, "will” or similar expressions. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from such statements. These statements are based on management’s best assumptions and beliefs in light of the information currently available to them. These forward-looking statements are only predictions based upon our current expectations and views of future events and developments and are subject to risks and uncertainties that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. Factors, including risks and uncertainties that could cause these differences, include those risks and uncertainties identified in the Risk Factors above.

 

 

 

 

Stock exchange release (6)
    
    
 
29 July 2021
  

 

ANALYST WEBCAST

 

Nokia's video webcast will begin on 29 July 2021 at 11:30 a.m. Finnish time. A link to the webcast will be available at www.nokia.com/financials. Media representatives can follow the presentation via the link, or alternatively call +1-412-717-9224.

 

About Nokia

 

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

 

As a trusted partner for critical networks, we are committed to innovation and technology leadership across mobile, fixed and cloud networks. We create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs.

 

Adhering to the highest standards of integrity and security, we help build the capabilities needed for a more productive, sustainable and inclusive world.

 

Inquiries:

 

Nokia

Communications

Phone: +358 10 448 4900

Email: press.services@nokia.com

Katja Antila, Head of Media Relations

 

Nokia

Investor Relations

Phone: +358 40 803 4080

Email: investor.relations@nokia.com

 

 

 

 

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29 July 2021 1 Summary Report for Q2 and Half Year 2021 Strong first half, 2021 Outlook revised upwards EUR million (except for EPS in EUR) Q2'21 Q2'20 YoY change Constant currency YoY change Q1–Q2'21 Q1–Q2'20 YoY change Constant currency YoY change Reported results Net sales 5 313 5 092 4% 9% 10 389 10 005 4% 9% Gross margin %1 41.0% 38.1% 290bps 39.5% 36.8% 270bps Research and development expenses1 (1 063) (1 013) 5% (2 060) (2 019) 2% Selling, general and administrative expenses1 (712) (709) 0% (1 360) (1 489) (9)% Operating profit 484 170 185% 916 94 874% Operating margin % 9.1% 3.3% 580bps 8.8% 0.9% 790bps Profit/(loss) for the period 351 99 255% 614 (17) EPS, diluted 0.06 0.02 200% 0.11 0.00 Net cash and current financial investments 3 688 1 550 138% 3 688 1 550 138% Comparable results Net sales 5 313 5 093 4% 9% 10 389 10 007 4% 9% Gross margin % 42.3% 39.6% 270bps 40.3% 38.0% 230bps Research and development expenses (1 011) (953) 6% (1 985) (1 928) 3% Selling, general and administrative expenses (585) (590) (1)% (1 137) (1 262) (10)% Operating profit 682 423 61% 1 234 539 129% Operating margin % 12.8% 8.3% 450bps 11.9% 5.4% 650bps Profit for the period 539 316 71% 914 348 163% EPS, diluted 0.09 0.06 50% 0.16 0.06 167% ROIC2 18.4% 11.4% 700bps 1In Q4 2020, Nokia reclassified certain items of income and expenses from other operating income and expenses to the functions. The comparative reported results for Q2’20 and Q1-Q2'20 have been recast accordingly. Refer to Note 1, Basis of preparation, in the Financial statement information section for details. 2Comparable ROIC = Comparable operating profit after tax, last four quarters / invested capital, average of last five quarters’ ending balances. Refer to Note 10, Performance measures, in the Financial statement information section for details. Reconciliation of reported operating profit to comparable operating profit EUR million Q2'21 Q2'20 YoY change Q1–Q2'21 Q1–Q2'20 YoY change Reported operating profit 484 170 185% 916 94 874% Restructuring and associated charges 141 130 177 217 Amortization of acquired intangible assets 97 106 194 207 Settlement of legal disputes (80) 0 (80) 0 Impairment of assets, net of impairment reversals 32 19 33 20 Other, net 8 (2) (6) 1 Comparable operating profit 682 423 61% 1 234 539 129% ▪ Top-line strength continued in Q2, with constant currency net sales up 9% year-on-year, driven by growth across all business groups, with particular strength in Network Infrastructure. Reported net sales increased 4%. ▪ Important progress on our three-phased strategy. Mobile Networks strengthening its competitiveness with major product launch, including some industry leading features. Network Infrastructure continued to gain share in the first half. ▪ Our new operating model is delivering clear accountability and financial discipline through the organization. ▪ Comparable gross margin of 42.3% (reported 41.0%) in Q2, reflecting broad improvements, particularly in Mobile Networks, which benefitted from a one-time software deal and 5G growth. ▪ Comparable operating margin of 12.8% (reported 9.1%) in Q2, with improvements across all business groups, also helped by the one-time software deal in Mobile Networks. ▪ Q2 comparable diluted EPS of EUR 0.09; reported diluted EPS of EUR 0.06. ▪ Generated positive free cash flow for the fifth quarter in a row; liquidity position remains solid with EUR 3.7bn net cash. ▪ Strong performance in first half 2021 with 9% constant currency sales growth (reported net sales +4%) and comparable operating margin of 11.9% (reported 8.8%), driving increase in our full year Outlook although headwinds remain for the second half. ▪ Considering our strong start to 2021, we revise our full year 2021 Outlook, including net sales expected to be EUR 21.7bn to 22.7bn (previously EUR 20.6bn to EUR 21.8bn) with comparable operating margin in the range of 10-12% (previously 7-10%).

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29 July 2021 2 Summary Pekka Lundmark, President and CEO, on Q2 2021 results I am delighted that our strong start to 2021 continued in the second quarter. Our constant currency sales growth of 9%, combined with good cost control, enabled us to deliver a comparable operating margin of 12.8%. Even excluding a one-time software deal in Mobile Networks, we saw good underlying progress in operating margin. We are already seeing the benefits of our new operating model which helped us to deliver such a strong financial performance. The highlight of the second quarter was the Mobile Networks launch of our new AirScale baseband and radio products with up to 75% better power efficiency helping to reduce our environmental footprint and the lightest 32TRX massive MIMO active antenna in the market. In Network Infrastructure we sustained double-digit growth and have a series of product launches ahead in the second half to further strengthen our differentiation. Cloud and Network Services is making good progress on its portfolio rebalancing and Nokia Technologies continues to scale with two licensing agreements with automotive manufacturers including Daimler. Considering our robust start to 2021, we are revising upwards our full year Outlook. We now expect a comparable operating margin between 10-12% for full year 2021, compared to our previous range of 7-10%. We have executed faster than planned on our strategy in the first half which provides us with a good foundation for the full year. We still however expect to face the earlier communicated headwinds in the second half, particularly with market share loss and price erosion in North America. Therefore, we still expect our typical quarterly earnings seasonality to be less pronounced in 2021. In addition, we continue to accelerate R&D investments and monitor risks around component availability, considering the strong demand for our products. Overall, I am very happy with the progress made in the first half. I want to thank our entire team for their hard work and commitment. Outlook Full year 2021 Full year 2023 Net sales1 EUR 21.7 billion to EUR 22.7 billion (adjusted from EUR 20.6 to 21.8bn) Grow faster than the market Comparable operating margin2 10 to 12% (adjusted from 7 to 10%) 10 to 13% Free cash flow3 Clearly positive (adjusted from positive) Clearly positive Comparable ROIC2,4 17 to 21% (adjusted from 10 to 15%) 15 to 20% 1 Assuming actual currency rates for first half 2021 and end of June EUR/USD rate of 1.19 continues in the second half 2021 (this is adjusted from our previous guidance based on the year-end 2020 EUR/USD rate of 1.23). 2 Comparable measures exclude intangible asset amortization and other purchase price fair value adjustments, goodwill impairments, restructuring related charges and certain other items affecting comparability. Refer to Note 10, Performance measures, in the Financial statement information for details. 3 Free cash flow = net cash from/(used in) operating activities - capital expenditures + proceeds from sale of property, plant and equipment and intangible assets – purchase of non-current financial investments + proceeds from sale of non-current financial investments.. 4 Comparable ROIC = comparable operating profit after tax, last four quarters / invested capital, average of last five quarters’ ending balances. Refer to Note 10, Performance measures, in the Financial statement information for details. Outlook assumptions ▪ Nokia’s outlook assumptions for the comparable operating margin of each business group in 2021 and 2023 are provided below (updated): Full year 2021 Full year 2023 Mobile Networks 4 to 7% 5 to 8% Network Infrastructure 8 to 11% 9 to 12% Cloud and Network Services 3 to 6% 8 to 11% Nokia Technologies >75% >75% ▪ We continue to maintain our expectation for Nokia Technologies to deliver a slight improvement in comparable operating profit in full year 2021, relative to full year 2020, and stable performance over the longer-term; ▪ Group Common and Other primarily consists of support function costs. We expect the net negative impact of Group Common and Other to be approximately EUR 200 million in 2021 and over the longer-term; ▪ In full year 2021, Nokia expects the free cash flow performance of Nokia Technologies to be approximately EUR 600 million lower than its operating profit, primarily due to prepayments we received from certain licensees; ▪ Comparable financial income and expenses are expected to be an expense of approximately EUR 200 million in full year 2021 and EUR 250 million over the longer-term (updated); ▪ Comparable income tax expenses are expected to be approximately EUR 450 million in full year 2021 and over the longer-term, subject to regional profit mix, net sales subject to withholding tax and the timing of patent licensing cash flow; ▪ Cash outflows related to income taxes are expected to be approximately EUR 350 million in full year 2021 and over the longer- term until our US or Finnish deferred tax assets are fully utilized; ▪ Capital expenditures are expected to be approximately EUR 650 million in full year 2021 and EUR 600 million over the longer-term (updated); and ▪ Rule of thumb related to currency fluctuations: Assuming our current mix of net sales and total costs (refer to Note 1, Basis of Preparation, in the Financial statement information section for details), we expect that a 10% increase in the EUR/USD exchange rate would have an impact of approximately negative 4 to 5% on net sales and an approximately neutral impact on operating profit.

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29 July 2021 3 Financial results Financial Results Net sales and comparable operating profit by business group € 0m € 400m € 800m € 1200m € 1600m € 2000m € 2400m € 2800m € 3200m Mobile Networks Network Infrastructure Cloud and Network Services Nokia Technologies Group Common and Other Q2’20-Q2’21 net sales -€ 200m -€ 100m € 0m € 100m € 200m € 300m € 400m € 500m Mobile Networks Network Infrastructure Cloud and Network Services Nokia Technologies Group Common and Other Q2’20-Q2’21 comparable operating profit/-loss EUR million Q2'21 Q2'20 YoY change Constant currency YoY change Q1–Q2'21 Q1–Q2'20 YoY change Constant currency YoY change Net sales 5 313 5 092 4% 9% 10 389 10 005 4% 9% Mobile Networks 2 380 2 424 (2)% 3% 4 642 4 768 (3)% 3% Network Infrastructure 1 778 1 545 15% 20% 3 505 2 963 18% 24% Cloud and Network Services 703 718 (2)% 2% 1 377 1 462 (6)% (2)% Nokia Technologies 401 341 18% 20% 766 689 11% 13% Group Common and Other 62 75 (17)% (14)% 119 143 (17)% (11)% Items affecting comparability 0 (1) 0 (1) Eliminations (10) (11) (9)% (20) (20) 0% Comparable operating profit/(loss) 682 423 61% 1 234 539 129% Mobile Networks 249 183 36% 326 197 65% Network Infrastructure 162 66 145% 349 34 926% Cloud and Network Services 10 (6) (10) (45) (78)% Nokia Technologies 332 272 22% 618 552 12% Group Common and Other (70) (91) (23)% (48) (199) (76)% Q2 2021 to Q2 2020 bridge for net sales and operating profit EUR million Q2'21 Volume, price, mix and other Foreign exchange impact Items affecting comparability Q2'20 Net sales 5 313 466 (246) 1 5 092 Operating profit 484 245 14 55 170 Operating margin % 9.1% 3.3%

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29 July 2021 4 Financial results Net sales by region € 0m € 200m € 400m € 600m € 800m € 1000m € 1200m € 1400m € 1600m € 1800m € 2000m € 2200m € 2400m Europe North America Asia Pacific Middle East & Africa Greater China Latin America India Q2’20-Q2’21 EUR million Q2'21 Q2'20¹ YoY change Constant currency YoY change Q1–Q2'21 Q1–Q2'20¹ YoY change Constant currency YoY change Asia Pacific 582 643 (9)% (4)% 1 162 1 343 (13)% (10)% Europe 1 662 1 565 6% 7% 3 136 2 999 5% 6% Greater China 374 338 11% 11% 776 671 16% 17% India 290 179 62% 75% 538 392 37% 49% Latin America 323 216 50% 57% 616 497 24% 31% Middle East & Africa 423 426 (1)% 4% 838 908 (8)% (2)% North America 1 659 1 725 (4)% 4% 3 324 3 196 4% 13% Total 5 313 5 092 4% 9% 10 389 10 005 4% 9% 1In the first quarter of 2021, Nokia aligned how it externally reports financial information on a regional basis with its internal reporting structure. As a result, India which was earlier presented as part of Asia Pacific region is presented as a separate region. In addition, certain countries are now presented as part of a different region. The comparative net sales by region amounts for Q2'20 and Q1-Q2'20 have been recast accordingly. Net sales by customer type € 0m € 1000m € 2000m € 3000m € 4000m € 5000m € 6000m Communication service providers Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 € 0m € 100m € 200m € 300m € 400m € 500m € 600m Enterprise Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 € 0m € 100m € 200m € 300m € 400m € 500m € 600m Licensees Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 EUR million Q2'21 Q2'20 YoY change Constant currency YoY change Q1–Q2'21 Q1–Q2'20 YoY change Constant currency YoY change Communication service providers 4 277 4 180 2% 8% 8 375 8 245 2% 7% Enterprise 357 376 (5)% (2)% 712 687 4% 7% Licensees 401 341 18% 20% 766 689 11% 13% Other1 278 195 43% 43% 536 384 40% 40% Total 5 313 5 092 4% 9% 10 389 10 005 4% 9% 1Includes net sales of Submarine Networks which operates in a different market, and Radio Frequency Systems (RFS), which is being managed as a separate entity, and certain other items, such as eliminations of inter-segment revenues and certain items related to purchase price allocation. Submarine Networks and RFS net sales include also revenue from communication service providers and enterprise customers.

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29 July 2021 5 Financial results Q2 2021 compared to Q2 2020 Net sales In Q2 2021, reported net sales increased 4%, primarily driven by Network Infrastructure and Nokia Technologies, partially offset by Mobile Networks and Cloud and Network Services, both of which were negatively impacted by foreign exchange rate fluctuations. On a constant currency basis, Nokia net sales increased 9%. Network Infrastructure saw growth across all four of its businesses. Nokia Technologies saw strong growth, driven by catch-up net sales related to new patent license agreements, as well as higher patent licensing net sales related to both new and renewed patent license agreements signed this year and in Q4 2020. Mobile Networks net sales grew on a constant currency basis, primarily driven by strong growth in 5G, partially offset by legacy radio access products. Cloud and Network Services net sales grew on a constant currency basis, primarily driven by Core Networks and Enterprise Solutions, partially offset by Cloud and Cognitive Services and Business Applications. From a regional perspective, growth in constant currency net sales was broad-based, with particular strength in India, Latin America and Europe. Net sales in North America increased 4% on a constant currency basis, primarily due to Network Infrastructure. From a customer perspective, net sales to Enterprise customers decreased 5% on a reported basis and 2% on a constant currency basis, primarily due to a difficult year-ago comparison. In Q2 2021, we gained 63 new Enterprise customers and our pipeline remains strong. We also continued to have strong momentum in private wireless, now with more than 340 customers. Gross margin Reported gross margin in Q2 2021 was 41.0%, compared to 38.1% in Q2 2020. Comparable gross margin was 42.3%, compared to 39.6% in Q2 2020. The improvement in comparable gross margin was primarily driven by Mobile Networks and Nokia Technologies. The increase in Mobile Networks stems mainly from the EUR 80 million positive impact of a one-time software deal that was completed in Q2 2021, in addition to 5G growth, progress in our cost competitiveness and favorable product mix. The increase in Nokia Technologies was primarily driven by higher net sales. Operating profit and margin Reported operating profit was EUR 484 million, or 9.1% of net sales, compared to EUR 170 million, or 3.3% of net sales in Q2 2020. Comparable operating profit was EUR 682 million, or 12.8% of net sales, compared to EUR 423 million, or 8.3% of net sales in Q2 2020. The improvement in comparable operating profit and operating margin was primarily driven by higher gross profit (including the above mentioned one-time software deal in Mobile Networks) and a net positive fluctuation in other income and expenses, related to foreign exchange hedging and Nokia’s venture fund investments. This was partially offset by higher R&D expenses, as Mobile Networks continued to invest in securing full portfolio competitiveness. In Q2 2021, operating profit was negatively impacted by higher incentive accruals, compared to Q2 2020. In Q2 2021 and Q2 2020, the difference between reported and comparable operating profit was primarily related to restructuring and associated charges, the amortization of acquired intangible assets and the impairment of assets. In Q2 2021, reported operating profit also included a gain related to the settlement of legal disputes, which was not included in comparable results. Profit/loss for the period Reported net profit was EUR 351 million, compared to a net profit of EUR 99 million in Q2 2020. Comparable net profit was EUR 539 million, compared to EUR 316 million in Q2 2020. The improvement in comparable net profit was primarily driven by the increase in comparable operating profit, partially offset by an increase in income tax expenses, reflecting higher profit before tax, and a net negative fluctuation in financial income and expenses. In Q2 2021 and Q2 2020, in addition to the items impacting comparability included in operating profit, the difference between reported and comparable net profit was primarily related to the change in financial liability to acquire Nokia Shanghai-Bell non- controlling interest and change in the income tax expense driven by the one-off deferred tax expense related to legal entity restructuring in Q2 2020 and a deferred tax benefit due to tax rate changes in Q2 2021. Earnings per share Reported diluted EPS was EUR 0.06, compared to EUR 0.02 in Q2 2020. Comparable diluted EPS was EUR 0.09, compared to EUR 0.06 in Q2 2020. Comparable return on Invested Capital (“ROIC”) Q2 2021 comparable ROIC was 18.4%, compared to 11.4% in Q2 2020. The increase was primarily driven by growth in operating profit and lower invested capital, reflecting growth in total cash and current financial investments and a decrease in total equity, partially offset by an increase in total interest-bearing liabilities. Cash performance During Q2 2021, net cash was approximately flat, resulting in an end-of-quarter net cash balance of approximately EUR 3.7 billion. During Q2 2021, total cash decreased by approximately EUR 100 million, resulting in an end-of-quarter total cash balance of approximately EUR 8.8 billion. The cash performance in Q2 2021 reflected strong operating profit, almost entirely offset by the payment of 2020 performance-related incentives to employees and further reductions in the sale of receivables. Q2 2021 was the fifth quarter in a row of positive free cash flow.

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29 July 2021 6 Financial results January-June 2021 compared to January-June 2020 Net sales In the first six months of 2021, reported net sales increased 4%, primarily driven by Network Infrastructure and Nokia Technologies, partially offset by Mobile Networks and Cloud and Network Services, which were negatively impacted primarily by foreign exchange rate fluctuations. On a constant currency basis, Nokia net sales increased 9% in the first six months of 2021. Network Infrastructure saw strength across all four of its businesses. Nokia Technologies net sales grew, driven by higher patent licensing net sales related to both new and renewed patent license agreements signed this year and in Q4 2020 and catch-up net sales related to new patent license agreements, partially offset by lower brand licensing net sales. Mobile Networks net sales grew on a constant currency basis, primarily driven by strong growth in 5G, partially offset by services and legacy radio access products. The decrease in Cloud and Network Services was primarily driven by Cloud and Cognitive Services and Business Applications, partially offset by Core Networks. From a regional perspective, the increase in constant currency net sales was driven by broad-based growth across most regions, with the exception of Asia Pacific and Middle East and Africa. Notably, net sales in North America increased 4% on a reported basis and 13% on a constant currency basis, primarily due to Network Infrastructure. From a customer perspective, net sales to Enterprise customers increased 4% on a reported basis and 7% on a constant currency basis. Year-to-date, we have gained 126 new Enterprise customers and our pipeline remains strong. We also continued to have strong momentum in private wireless, now with more than 340 customers. Gross margin Reported gross margin in the first six months of 2021 was 39.5%, compared to 36.8% in the first six months of 2020. Comparable gross margin was 40.3%, compared to 38.0% in the year-ago period. The improvement in comparable gross margin was primarily driven by Mobile Networks and, to a lesser extent Nokia Technologies and Network Infrastructure. The increase in Mobile Networks stems mainly from 5G growth, favorable product mix and the impact of a one-time software deal that was completed in Q2 2021. The increase in Nokia Technologies reflected higher net sales. The increase in Network Infrastructure was primarily driven by higher gross margin in IP Networks, Optical Networks and Submarine Networks, partially offset by lower gross margin in Fixed Networks. Operating profit and margin Reported operating profit in the first six months of 2021 was EUR 916 million, or 8.8% of net sales, compared to EUR 94 million, or 0.9% of net sales, in the first six months of 2020. Comparable operating profit was EUR 1 234 million, or 11.9% of net sales, compared to EUR 539 million, or 5.4% of net sales in the year-ago period. The improvement in comparable operating profit and operating margin was primarily driven by higher gross profit, a net positive fluctuation in other income and expenses, primarily related to Nokia’s venture fund investments, foreign exchange hedging and the reversal of loss allowances on certain trade receivables, as well as lower SG&A expenses. This was partially offset by higher R&D expenses, as Mobile Networks continued to invest in securing full portfolio competitiveness. In the first six months of 2021, operating profit was negatively impacted by higher incentive accruals, compared to the first six months of 2020. In the first six months of 2021 and the first six months of 2020, the difference between reported and comparable operating profit was primarily related to restructuring and associated charges, the amortization of acquired intangible assets and the impairment of assets. In the first six months of 2021, reported operating profit also included a gain related to the settlement of legal disputes, which was not included in comparable results. Profit/loss for the period Reported net profit was EUR 614 million, compared to a net loss of EUR 17 million in the first six months of 2020. Comparable net profit was EUR 914 million, compared to EUR 348 million in the year-ago period. The improvement in comparable net profit was primarily driven by the increase in comparable operating profit, partially offset by an increase in income tax expenses, reflecting higher profit before tax. In the first six months of 2021 and the first six months of 2020, in addition to the items impacting comparability included in operating profit, the difference between reported and comparable net profit/loss was primarily related to the change in financial liability to acquire Nokia Shanghai-Bell non-controlling interest and change in the income tax expense driven by the one-off deferred tax expense related to legal entity restructuring in the first six months of 2020 and a deferred tax benefit due to tax rate changes in the first six months of 2021. Earnings per share Reported diluted EPS in the first six months of 2021 was EUR 0.11, compared to EUR 0.00 in the first six months of 2020. Comparable diluted EPS was EUR 0.16, compared to EUR 0.06 in the year-ago period. Cash performance The strong cash performance in the first six months of 2021 was primarily driven by our strong operating profit, as well as good collection of receivables in Q1 2021. At the end of Q2 2021, we had a net cash balance of approximately EUR 3.7 billion and a total cash balance of approximately EUR 8.8 billion.

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29 July 2021 7 Financial results Cash and cash flow in Q2 2021 EUR million, at end of period Q2'21 Q1'21 QoQ change Q4'20 YTD change Total cash and current financial investments 8 751 8 842 (1)% 8 061 9% Net cash and current financial investments1 3 688 3 689 (0)% 2 485 48% 1 Net cash and current financial investments does not include lease liabilities. For details, please refer to Note 10, Performance measures, in the Financial statement information. EUR billion Free cash flow During Q2 2021, Nokia’s free cash flow was EUR 77 million, driven by strong adjusted profit, partially offset by cash outflows related to net working capital, capital expenditures, restructuring, income taxes and net interest. Our free cash flow in Q2 2021 was negatively impacted by the payment of 2020 performance-related incentives to employees. Net cash from operating activities Net cash from operating activities was driven by: ▪ Nokia’s adjusted profit of EUR 910 million. ▪ Approximately EUR 70 million of restructuring and associated cash outflows, related to our current and previous cost savings programs. ▪ Excluding the restructuring and associated cash outflows, the decrease in net cash related to net working capital was approximately EUR 590 million, as follows: o The increase in receivables was approximately EUR 80 million, primarily due to the reduced balance sheet impact related to the sale of receivables. o The increase in inventories was approximately EUR 140 million, as we continue to build inventory levels to meet customer demand. o The decrease in liabilities was approximately EUR 380 million, primarily due to the payment of 2020 performance-related incentives to employees. ▪ An outflow related to cash taxes of approximately EUR 90 million. ▪ An outflow related to net interest of approximately EUR 50 million. Net cash used in investing activities ▪ Net cash used in investing activities was related primarily to capital expenditures of approximately EUR 110 million, and net cash outflows related to the acquisition of a business of approximately EUR 30 million. This was partially offset by a net cash inflow from non-current financial investments of approximately EUR 70 million and the sale of fixed assets of approximately EUR 20 million. Net cash used in financing activities ▪ Net cash used in financing activities was related primarily to lease payments of approximately EUR 50 million. Change in total cash and net cash In Q2 2021, the approximately EUR 90 million difference between the change in total cash and net cash was primarily due to a decrease in interest-bearing liabilities, driven by repayments.

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29 July 2021 8 Financial results Comparable return on invested capital Rolling four quarters EUR million Q2'21 Q1'21 Q2'20 Comparable operating profit 2 776 2 517 2 151 Comparable profit before tax 2 608 2 368 1 924 Comparable income tax expense (606) (589) (488) Comparable operating profit after tax 2 131 1 891 1 605 Average EUR million 30 June 2021 31 March 2021 30 June 2020 Total equity 14 238 14 572 15 107 Total interest-bearing liabilities 5 498 5 485 4 795 Total cash and current financial investments (8 155) (7 667) (5 884) Invested capital 11 581 12 390 14 018 Comparable ROIC1 18.4% 15.3% 11.4% 1Comparable ROIC = Comparable operating profit after tax, last four quarters / invested capital, average of last five quarters’ ending balances. Refer to Note 10, Performance measures, in the Financial statement information for details.

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29 July 2021 9 Sustainability Sustainability Our strategy and focus areas We create technology that helps the world act together. We strongly believe that connectivity and technology will play a key role in helping to solve many future challenges. Our sustainability strategy is focused on the areas we believe will have the greatest impact on sustainable development and our profitability: climate, integrity and culture. Climate The importance of combatting climate change through connectivity solutions will only increase and we recognize our responsibility in the fight against climate change. We have committed to cut our greenhouse gas emissions by 50 percent between 2019 and 2030 as part of our updated Science Based Targets (SBTs), in line with a 1.5°C warming scenario. This target covers emissions across our own operations and close to 100% of our current product portfolio, as well as logistics and final assembly factories within our supply chain. In June, we announced that we are trialling our unique Liquid Cooling AirScale Baseband solution with Japanese mobile operator KDDI. The Liquid Cooling AirScale solution cuts cooling system energy consumption by up to 90 percent compared to traditional active air cooling system. Additionally, in June we launched our next-generation AirScale 5G portfolio powered by ReefShark technology. The highly efficient ReefShark powered plug-in cards reduce power consumption by up to 75 percent. Integrity Nokia is committed to the highest standards of integrity and business ethics. This year, Nokia was named as one of the World’s Most Ethical Companies by Ethisphere Institute; this was the fourth consecutive year Nokia has been so recognized. Nokia has a robust compliance program and a strong open reporting culture that encourages all employees to speak up. This open reporting culture is enhanced by a network of ombuds leaders who support employees who wish to raise concerns; we have ombuds leaders around the globe. Other vital elements of Nokia’s compliance program include delivering effective, practical and engaging compliance training to our employees and carrying out careful integrity screening of various third parties with whom we do business. This year we have delivered already 144 separate live training sessions on a variety of compliance topics and we have rolled out five unique “microlearning” modules – timely compliance training segments that are customized to address specific risks and issues faced by segments of our global workforce. These live trainings are in addition to the online training modules available to our employees, including our Ethical Business Training – training on the importance of ethics and integrity that is mandatory for every Nokia employee. Culture We believe our people are our greatest asset and we aim to enable a culture that drives business value based on three essentials: open, fearless and empowered. As part of encouraging high performance, integrity, and inclusion through this culture, we are aiming at improving the average internal inclusion score yearly from the 2020 baseline score of 7.6 on a scale of 1-10. We also believe that increasing the number of women in our talent pool will differentiate us and therefore we are targeting a minimum of 26% female hires in global external recruits by the end of 2021. In order to achieve this target, we have increased efforts across all business groups to attract more female talent. We are also directing 30% of our corporate social responsibility (CSR) spend toward programs focused on empowering diversity. These are programs typically done in collaboration with non-governmental organizations (NGOs) and other partners. In Q2, we signed the Women Empowerment Principles and agreed to collaborate with UN Women on four new pilot projects to improve gender equality and promote inclusion and diversity in the Middle East and Africa region. During Q2, we also delivered webinars on Nokia’s labor practices with a deep-dive into inclusion and diversity to address Nokia suppliers in 23 countries identified as high-risk countries related to minority rights by Maplecroft with a special focus on ethnic, religious, sexual and gender minorities. Other topics We published our annual sustainability report, “People & Planet”, in April 2021, Conflict Minerals report in May 2021 and Modern Slavery statement in June 2021.

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29 July 2021 10 Segment details Segment details Mobile Networks, Q2 2021 compared to Q2 2020 EUR million Q2'21 Q2'20 YoY change Constant currency YoY change Q1–Q2'21 Q1–Q2'20 YoY change Constant currency YoY change Reported results Net sales 2 380 2 424 (2)% 3% 4 642 4 768 (3)% 3% Gross margin % 39.6% 35.0% 460bps 36.3% 32.6% 370bps Operating profit/(loss) 219 104 111% 263 60 338% Operating margin % 9.2% 4.3% 490bps 5.7% 1.3% 440bps Comparable results Gross margin % 40.9% 36.1% 480bps 37.1% 33.7% 340bps Operating profit/(loss) 249 183 36% 326 197 66% Operating margin % 10.5% 7.5% 300bps 7.0% 4.1% 290bps Addressable market development As of the end of Q2 2021, the forecasted Mobile Networks addressable market, excluding China, for 2021 was EUR 46 billion, calculated assuming actual currency rates for first half 2021 and end of June EUR/USD rate of 1.19 continues in the second half 2021. On a constant currency basis, we estimate that the addressable market, excluding China, will grow by approximately 6% (compared to 3% previously). The change was primarily driven by increased expectations for the CSP 4G and 5G radio access market across regions, particularly in Europe, India, Middle East and Africa and North America. Net sales Mobile Networks net sales decreased 2%. On a constant currency basis, Mobile Networks net sales increased 3%. On a constant currency basis, the increase in net sales was primarily driven by strong growth in 5G. This was partially offset by a decline in legacy radio access products. From a regional perspective, on a constant currency basis, the increase was primarily driven by growth across most regions, with particular strength in India and Greater China. This was offset by declines in North America and Asia Pacific. Gross margin Reported gross margin was 39.6%, compared to 35.0% in Q2 2020. Comparable gross margin was 40.9%, compared to 36.1% in Q2 2020. The strong improvement in comparable gross margin stems mainly from the impact of a one-time software deal that was completed in Q2 2021 (worth approximately EUR 80 million), in addition to 5G growth, progress in our cost competitiveness and favorable product mix. Operating profit and margin Reported operating profit was EUR 219 million, or 9.2% of net sales, compared to EUR 104 million, or 4.3% of net sales, in Q2 2020. Comparable operating profit was EUR 249 million, or 10.5% of net sales, compared to EUR 183 million, or 7.5% of net sales, in Q2 2020. The improvement in comparable operating profit and operating margin was primarily driven by higher gross profit (including the above mentioned one-time software deal), a net positive fluctuation in foreign exchange hedging, recorded in other operating income and expenses, as well as lower SG&A expenses. These were partially offset by an increase in R&D expenses to accelerate our product roadmaps and cost competitiveness and loss allowances on certain trade receivables, recorded in other operating income and expenses. In Q2 2021, operating profit was negatively impacted by higher incentive accruals, compared to Q2 2020. In Q2 2021 and Q2 2020, the difference between reported and comparable operating profit was primarily related to restructuring and associated charges and the amortization of acquired intangible assets. In Q2 2021, reported operating profit also included a gain related to the settlement of legal disputes, which was not included in comparable results. Operational Key Performance Indicators Proportion of our 5G shipments that are “5G Powered by ReefShark” This KPI tracks shipments of our System-on-Chip (“SoC”) based 5G Powered by ReefShark (“5G PBR”) product portfolio. Increased 5G PBR shipments are expected to help reduce our product cost and improve the power efficiency of our products. In Q2 2021, 5G PBR accounted for 54% of shipments. Our product development roadmaps remain on track for 5G PBR to account for ~70% of product shipments by the end of 2021, and ~100% of product shipments by the end of 2022, and we are reconfirming these previously stated targets. The new AirScale radio and baseband products launched in Q2 2021 are also important final steps towards our full SoC portfolio evolution. Our weighted 5G conversion rate and market share This KPI measures how we are doing in converting our end of 2018 4G footprint into 5G footprint. It factors in customer size, as well as new 5G footprint where we did not previously have a 4G installed base (meaning it can be over 100%). At the end of Q2 2021, our 5G conversion rate improved slightly but remains approximately 90%, excluding China. Including China, our 5G conversion rate also improved slightly but remains approximately 80%. Since the end of 2018, our 4G to 5G conversion rate has been impacted by not converting all of our 4G footprint into 5G footprint in North America and China. We believe this has now stabilized and we see opportunities it could start to improve, but the timing of deals remains uncertain. In Q2 2021, the slight increase was primarily driven by a footprint gain in Canada. We are targeting 4G + 5G market share, excluding China, to be approximately 25% to 27% in full year 2021, and we believe we are on track to meet this target.

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29 July 2021 11 Segment details Network Infrastructure, Q2 2021 compared to Q2 2020 EUR million Q2'21 Q2'20 YoY change Constant currency YoY change Q1–Q2'21 Q1–Q2'20 YoY change Constant currency YoY change Reported results Net sales 1 778 1 545 15% 20% 3 505 2 963 18% 24% IP Networks 630 611 3% 8% 1 255 1 154 9% 15% Optical Networks 391 363 8% 13% 791 758 4% 10% Fixed Networks 531 439 21% 28% 1 022 789 30% 37% Submarine Networks 226 131 73% 72% 437 263 66% 64% Gross margin % 34.9% 33.9% 100bps 34.8% 32.8% 200bps Operating profit/(loss) 66 (49) 170 (174) Operating margin % 3.7% (3.2)% 690bps 4.9% (5.9)% 1 080bps Comparable results Gross margin % 35.3% 34.8% 50bps 35.1% 33.7% 140bps Operating profit/(loss) 162 66 145% 349 34 927% Operating margin % 9.1% 4.3% 480bps 10.0% 1.1% 890bps Addressable market development As of the end of Q2 2021, the forecasted Network Infrastructure addressable market, excluding Submarine Networks, for 2021 was EUR 42 billion, calculated assuming actual currency rates for first half 2021 and end of June EUR/USD rate of 1.19 continues in the second half 2021. On a constant currency basis, we estimate that the addressable market, excluding Submarine Networks, will grow by approximately 4% (compared to 4% previously). Net sales Network Infrastructure net sales increased 15%. On a constant currency basis, Network Infrastructure net sales increased 20%. The net sales increase was driven by all four businesses within Network Infrastructure. The IP Networks growth was driven by technology leadership, with growth across all regions on a constant currency basis. Similarly, Optical Networks witnessed growth across all regions on a constant currency basis. The strong growth trend in Fixed Networks is a continuation of increased demand for fiber access technologies and broadband devices, partially offset by a decline in copper access technologies. North America continues to be a key driver for this growth. The continuation of large submarine telecommunications projects underpins the growth momentum in Submarine Networks. Gross margin Reported gross margin was 34.9%, compared to 33.9% in Q2 2020. Comparable gross margin was 35.3%, compared to 34.8% in Q2 2020. The improvement in comparable gross margin stems mainly from higher gross margin in Optical Networks and Submarine Networks, partially offset by lower gross margin in IP Networks and Fixed Networks. Operating profit and margin Reported operating profit was EUR 66 million, or 3.7% of net sales, compared to an operating loss of EUR 49 million, or negative 3.2% of net sales, in Q2 2020. Comparable operating profit was EUR 162 million, or 9.1% of net sales, compared to EUR 66 million, or 4.3% of net sales, in Q2 2020. This improved result was driven by higher operating profit across all business units, except IP Networks. The improvement in comparable operating profit and operating margin was primarily driven by higher net sales and gross profit and, to a lesser extent, by a net positive fluctuation in other operating income and expenses, related to foreign exchange hedging. This was partially offset by higher R&D expenses, which are expected to continue to increase in the second half of 2021. In Q2 2021, operating profit was negatively impacted by higher incentive accruals, compared to Q2 2020. In Q2 2021 and Q2 2020, the difference between reported and comparable operating profit was primarily related to the amortization of acquired intangible assets and restructuring and associated charges.

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29 July 2021 12 Segment details Cloud and Network Services, Q2 2021 compared to Q2 2020 EUR million Q2'21 Q2'20 YoY change Constant currency YoY change Q1–Q2'21 Q1–Q2'20 YoY change Constant currency YoY change Reported results Net sales 703 718 (2)% 2% 1 377 1 462 (6)% (2)% Gross margin % 31.4% 31.9% (50)bps 32.0% 32.1% (10)bps Operating profit/(loss) (41) (54) (79) (123) Operating margin % (5.8)% (7.5)% 170bps (5.7)% (8.4)% 270bps Comparable results Gross margin % 35.7% 35.9% (20)bps 34.6% 35.1% (50)bps Operating profit/(loss) 10 (6) (10) (45) Operating margin % 1.4% (0.8)% 220bps (0.7)% (3.1)% 240bps Addressable market development As of the end of Q2 2021, the forecasted Cloud and Network Services addressable market for 2021 was EUR 26 billion, calculated assuming actual currency rates for first half 2021 and end of June EUR/USD rate of 1.19 continues in the second half 2021. On a constant currency basis, we estimate that the addressable market will grow by approximately 4% (compared to 2% previously). The change was primarily driven by increased expectations in CSP customers mainly in Asia Pacific, Europe, Middle East and Africa and North America. Net sales Cloud and Network Services net sales decreased 2%. On a constant currency basis, Cloud and Network Services net sales increased 2%. On a constant currency basis, the net sales increase was primarily driven by Core Networks, reflecting broad-based growth across most regions, and Enterprise Solutions. This was partially offset by declines in Cloud and Cognitive Services and Business Applications. The decrease in Cloud and Cognitive Services was primarily driven by the continuation of exiting poorly performing projects and lower cognitive services as we transition from 4G to 5G. Gross margin Reported gross margin was 31.4%, compared to 31.9% in Q2 2020. Comparable gross margin was 35.7%, compared to 35.9% in Q2 2020. Operating profit and margin Reported operating loss was EUR 41 million, or negative 5.8% of net sales, compared to an operating loss of EUR 54 million, or negative 7.5% of net sales, in Q2 2020. Comparable operating profit was EUR 10 million, or 1.4% of net sales, compared to an operating loss of EUR 6 million, or negative 0.8% of net sales, in Q2 2020. The improvement was primarily driven by a net positive fluctuation in other operating income and expenses, related to the reversal of allowances for losses on trade receivables and foreign exchange hedging. In Q2 2021, operating result was negatively impacted by higher incentive accruals, compared to Q2 2020. In Q2 2021 and Q2 2020, the difference between reported and comparable operating result was primarily related to restructuring and associated charges and the amortization of acquired intangible assets.

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29 July 2021 13 Segment details Nokia Technologies, Q2 2021 compared to Q2 2020 EUR million Q2'21 Q2'20 YoY change Constant currency YoY change Q1–Q2'21 Q1–Q2'20 YoY change Constant currency YoY change Reported results Net sales 401 341 18% 20% 766 689 11% 13% Gross margin % 99.8% 99.4% 40bps 99.7% 99.3% 40bps Operating profit/(loss) 331 271 22% 617 551 12% Operating margin % 82.5% 79.5% 300bps 80.5% 80.0% 50bps Comparable results Gross margin % 99.8% 99.4% 40bps 99.7% 99.3% 40bps Operating profit/(loss) 332 272 22% 618 552 12% Operating margin % 82.8% 79.8% 300bps 80.7% 80.1% 60bps Net sales Nokia Technologies net sales increased 18%. On a constant currency basis, Nokia Technologies net sales increased 20%. The increase in Nokia Technologies net sales was primarily due to catch-up net sales related to new patent license agreements, as well as higher patent licensing net sales related to new and renewed patent license agreements signed this year and in Q4 2020. In addition to our licensing agreement with Daimler, we also signed a patent license agreement with another automotive manufacturer. The two agreements, both of which generated net sales starting from Q2 2021, underline the strength of our cellular portfolio and growth opportunities for our automotive licensing program. Excluding the catch-up net sales, Nokia Technologies annualized net sales run rate was in the range of approximately EUR 1.4 to 1.5 billion in Q2 2021. Gross margin Both reported and comparable gross margin were 99.8%, compared to 99.4% in Q2 2020. Operating profit and margin Reported operating profit was EUR 331 million, or 82.5% of net sales, compared to EUR 271 million, or 79.5% of net sales, in Q2 2020. Comparable operating profit was EUR 332 million, or 82.8% of net sales, compared to EUR 272 million, or 79.8% of net sales, in Q2 2020. The improvement in comparable operating profit and operating margin was primarily driven by higher net sales. In Q2 2021, operating profit was negatively impacted by higher incentive accruals, compared to Q2 2020.

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29 July 2021 14 Segment details Group Common and Other, Q2 2021 compared to Q2 2020 EUR million Q2'21 Q2'20 YoY change Constant currency YoY change Q1–Q2'21 Q1–Q2'20 YoY change Constant currency YoY change Reported results Net sales 62 75 (17)% (14)% 119 143 (17)% (11)% Gross margin % (4.8)% 2.7% (750)bps (4.2)% (0.7)% (350)bps Operating profit/(loss) (90) (103) (55) (221) Operating margin % (145.2)% (137.3)% (790)bps (46.2)% (154.5)% 10 830bps Comparable results Gross margin % (4.8)% 8.0% (1 280)bps (4.2)% 2.8% (700)bps Operating profit/(loss) (70) (91) (48) (199) Operating margin % (112.9)% (121.3)% 840bps (40.3)% (139.2)% 9 890bps Net sales Group Common and Other net sales decreased 17%. On a constant currency basis, Group Common and Other net sales decreased 14%. The decrease in Group Common and Other net sales was driven by Radio Frequency Systems. Gross margin Reported gross margin was negative 4.8%, compared to 2.7% in Q2 2020. Comparable gross margin was negative 4.8%, compared to 8.0% in Q2 2020. Operating profit and margin Reported operating loss was EUR 90 million, or negative 145.2% of net sales, compared to an operating loss of EUR 103 million, or negative 137.3% of net sales, in Q2 2020. Comparable operating loss was EUR 70 million, or negative 112.9% of net sales, compared to an operating loss of EUR 91 million, or negative 121.3% of net sales, in Q2 2020. The improvement in comparable operating result and operating margin was primarily driven by a net positive fluctuation in other operating income and expense, primarily related to Nokia’s venture fund investments. This was partially offset by lower net sales and gross profit. In Q2 2021, operating result was negatively impacted by higher incentive accruals, compared to Q2 2020. In Q2 2021 and Q2 2020, the difference between reported and comparable operating result was primarily related to restructuring and associated charges. In Q2 2021, reported operating result also included fair value changes of a legacy IPR fund.

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29 July 2021 15 Additional information Additional information Dividend policy Target recurring, stable and over time growing ordinary dividend payments, taking into account the previous year’s earnings as well as the company’s financial position and business outlook. Cost savings program In Q1 2021, we announced plans to reset our cost base, targeting a reduction of approximately EUR 600 million by the end of 2023. We expect these cost savings to result in approximately EUR 600- 700 million of restructuring and associated charges by 2023. We continue to expect approximately EUR 500 million of cash outflows related to our previous restructuring program, of which EUR 250 million are expected to be recorded in 2021 and EUR 250 million beyond 2021. In EUR million, rounded to the nearest EUR 50 million Expected amounts for Total amount1 2021 2022 2023 Beyond 2023 Recurring cost savings 250 250 100 600 - cost of sales 150 150 - 300 - operating expenses 100 100 100 300 Restructuring and associated charges related to our most recent cost savings program ~350 ~150 ~150 600-700 Restructuring and associated cash outflows2 ~450 ~300 ~250 ~150 1 100-1 200 1 Savings expected by end of 2023 2 Includes cash outflows related to the most recent cost savings program, as well as the remaining cash outflows related to our previous programs. Restructuring and associated charges by Business Group In EUR million, rounded to the nearest EUR 50 million Mobile Networks 300-350 Network Infrastructure ~100 Cloud and Network Services 200-250 Total restructuring and associated charges 600-700

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29 July 2021 16 Additional information Significant events January – June 2021 On March 16, 2021, Nokia announced plans to reset its cost base to invest in future capabilities. On a group level, this is expected to lower the company’s cost base by approximately EUR 600 million by the end of 2023. These savings are intended to offset increased investments in R&D, future capabilities and costs related to salary inflation. Nokia expects approximately EUR 600-700 million of restructuring and associated charges by 2023. Planned restructuring is expected to result in an 80 000-85 000 employee organization, over an 18-24-month period, instead of the approximately 90 000 employees Nokia had at the time of the announcement. On March 17, 2021, Nokia announced it had appointed Melissa Schoeb as Chief Corporate Affairs Officer and member of the Group Leadership team effective from April 12, 2021. Nokia’s Chief Corporate Affairs Officer oversees Communications, Government Relations, Brand and Sustainability. Schoeb joins Nokia from Occidental, one of the world’s largest independent oil and gas companies, where she was Vice President, Corporate Affairs. On March 18, 2021, Nokia held its Capital Markets Day and provided an overview of long-term market trends, how it is setting itself up for value creation, detailed plans for each of its business segments, its financial outlook and its updated dividend policy. For more details, refer to the stock exchange release by Nokia on March 18, 2021, and Nokia’s investor relations website at www.nokia.com/investors. On April 8, 2021, Nokia held its Annual General Meeting (AGM) at its headquarters in Espoo under special arrangements due to the COVID-19 pandemic. Approximately 66 300 shareholders representing approximately 2 470 million shares and votes were represented at the meeting. The following resolutions were made: ▪ No dividend is paid for the financial year 2020. ▪ Sari Baldauf, Bruce Brown, Thomas Dannenfeldt, Jeanette Horan, Edward Kozel, Søren Skou, Carla Smits-Nusteling and Kari Stadigh were re-elected as members of the Board of Directors for a term ending at the close of the next AGM. In an assembly meeting that took place after the AGM, the Board re-elected Sari Baldauf as Chair of the Board, and Kari Stadigh as Vice Chair of the Board. ▪ Remuneration Report of the Company’s governing bodies was supported. ▪ Deloitte Oy was re-elected as the auditor for Nokia for the financial year 2022. ▪ Board was authorized to resolve to repurchase a maximum of 550 million Nokia shares and to issue a maximum of 550 million shares through issuance of shares or special rights entitling to shares in one or more issues. The authorizations are effective until October 7, 2022 and they terminated the corresponding authorizations granted by the Annual General Meeting on May 27, 2020.

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29 July 2021 17 Additional information Shares The total number of Nokia shares on 30 June 2021, equaled 5 675 461 159. On 30 June 2021 Nokia and its subsidiary companies owned 46 080 308 Nokia shares, representing approximately 0.8% of the total number of Nokia shares and voting rights. Risk Factors Nokia and its business are exposed to a number of risks and uncertainties which include but are not limited to: ▪ Competitive intensity, which is particularly impacting Mobile Networks and is expected to continue at a high level in full year 2021, as some competitors seek to take share in the early stages of 5G; ▪ Our ability to accelerate our product roadmaps and cost competitiveness through additional 5G investments in full year 2021, thereby enabling us to drive product cost reductions and maintain the necessary scale to be competitive; ▪ Some customers are reassessing their vendors in light of security concerns, creating near-term pressure to invest in order to secure long-term benefits; ▪ Developments in North America following the conclusion of the C-band auction, including the potential for temporary capital expenditure constraints or the acceleration of 5G deployments; ▪ The scope and duration of the COVID-19 impact, particularly in certain countries, including India, where the pandemic has worsened, and the pace and shape of the economic recovery following the pandemic; ▪ Our ability to procure certain standard components and the costs thereof, such as semiconductors; ▪ The timing of completions and acceptances of certain projects; ▪ Our product and regional mix; ▪ Macroeconomic, industry and competitive dynamics; ▪ The timing and value of new and existing patent licensing agreements with smartphone vendors, automotive companies and consumer electronics companies; ▪ Results in brand and technology licensing; costs to protect and enforce our intellectual property rights; and the regulatory landscape for patent licensing; as well as the risk factors specified under Forward-looking Statements of this report, and our 2020 annual report on Form 20-F published on March 4, 2021 under Operating and financial review and prospects-Risk factors. Forward-looking statements Certain statements herein that are not historical facts are forward- looking statements. These forward-looking statements reflect Nokia's current expectations and views of future developments and include statements regarding: A) expectations, plans, benefits or outlook related to our strategies, product launches, growth management and operational key performance indicators; B) expectations, plans or benefits related to future performance of our businesses (including the expected impact, timing and duration of that impact of COVID-19 on our businesses, our supply chain and our customers’ businesses) and any future dividends; C) expectations and targets regarding financial performance, cash generation, results, the timing of receivables, operating expenses, taxes, currency exchange rates, hedging, cost savings, product cost reductions and competitiveness, as well as results of operations including targeted synergies, better commercial management and those results related to market share, prices, net sales, income and margins; D) ability to execute, expectations, plans or benefits related to changes in organizational and operational structure and cash or cost savings arrangements; and (E) any statements preceded by or including "continue", “believe”, “commit”, “estimate”, “expect”, “aim”, “influence”, "will” or similar expressions. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from such statements. These statements are based on management’s best assumptions and beliefs in light of the information currently available to them. These forward-looking statements are only predictions based upon our current expectations and views of future events and developments and are subject to risks and uncertainties that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. Factors, including risks and uncertainties that could cause these differences, include those risks and uncertainties identified in the Risk Factors above. Proposed organizational changes Proposed organizational changes referenced in this release may be subject to consultation with employee representatives in certain jurisdictions and are not considered final until such processes are completed.

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29 July 2021 18 Financial tables, unaudited Financial statement information

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29 July 2021 19 Financial tables, unaudited Consolidated income statement (condensed) EUR million Reported Comparable Q2'21 Q2'20 Q1–Q2'21 Q1–Q2'20 Q2'21 Q2'20 Q1–Q2'21 Q1–Q2'20 Net sales (Notes 2, 3) 5 313 5 092 10 389 10 005 5 313 5 093 10 389 10 007 Cost of sales1 (3 133) (3 151) (6 285) (6 328) (3 064) (3 076) (6 200) (6 203) Gross profit1 (Note 2) 2 179 1 942 4 105 3 678 2 249 2 017 4 189 3 804 Research and development expenses1 (1 063) (1 013) (2 060) (2 019) (1 011) (953) (1 985) (1 928) Selling, general and administrative expenses1 (712) (709) (1 360) (1 489) (585) (590) (1 137) (1 262) Other operating income and expenses1 80 (50) 232 (76) 29 (50) 166 (75) Operating profit (Note 2) 484 170 916 94 682 423 1 234 539 Share of results of associated companies and joint ventures 0 6 (5) 3 0 6 (5) 3 Financial income and expenses (68) (11) (123) (61) (39) (27) (91) (93) Profit before tax 416 165 788 35 643 403 1 138 448 Income tax expense (Note 5) (66) (80) (166) (51) (104) (87) (224) (100) Profit/(loss) from continuing operations 350 85 622 (16) 539 316 914 348 Profit/(loss) from discontinued operations 1 14 (9) (1) 0 0 0 0 Profit/(loss) for the period 351 99 614 (17) 539 316 914 348 Attributable to Equity holders of the parent 344 94 605 (23) 532 311 905 342 Non-controlling interests 7 5 9 6 7 5 9 6 Earnings per share, EUR (for profit attributable to equity holders of the parent) Basic Continuing operations 0.06 0.01 0.11 0.00 0.09 0.06 0.16 0.06 Profit for the period 0.06 0.02 0.11 0.00 0.09 0.06 0.16 0.06 Diluted Continuing operations 0.06 0.01 0.11 0.00 0.09 0.06 0.16 0.06 Profit for the period 0.06 0.02 0.11 0.00 0.09 0.06 0.16 0.06 Average number of shares ('000 shares) Basic Continuing operations 5 629 374 5 610 426 5 626 737 5 609 281 5 629 374 5 610 426 5 626 737 5 609 281 Profit for the period 5 629 374 5 610 426 5 626 737 5 609 281 5 629 374 5 610 426 5 626 737 5 609 281 Diluted Continuing operations 5 665 966 5 631 431 5 664 224 5 609 281 5 665 966 5 631 431 5 664 224 5 631 154 Profit for the period 5 665 966 5 631 431 5 664 224 5 609 281 5 665 966 5 631 431 5 664 224 5 631 154 1In the fourth quarter of 2020, Nokia reclassified certain items of income and expenses from other operating income and expenses to the functions. The comparative reported amounts for Q2’20 and Q1-Q2'20 have been recast accordingly. Refer to Note 1, Basis of preparation. The above condensed consolidated income statement should be read in conjunction with accompanying notes.

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29 July 2021 20 Financial tables, unaudited Consolidated statement of comprehensive income (condensed) EUR million Reported Q2'21 Q2'20 Q1–Q2'21 Q1–Q2'20 Profit/(loss) for the period 351 99 614 (17) Other comprehensive income Items that will not be reclassified to profit or loss Remeasurements of defined benefit plans 379 (548) 1 092 (26) Income tax related to items that will not be reclassified to profit or loss (101) 138 (283) 8 Items that may be reclassified subsequently to profit or loss Translation differences (113) (550) 432 (160) Net investment hedges 9 157 (79) 49 Cash flow and other hedges 19 27 (3) 36 Financial assets at fair value through other comprehensive income 4 18 11 35 Other changes, net 0 4 0 3 Income tax related to items that may be reclassified subsequently to profit or loss (1) (39) 1 (23) Other comprehensive income/(loss), net of tax 196 (793) 1 171 (78) Total comprehensive income/(loss) for the period 547 (694) 1 785 (95) Attributable to: Equity holders of the parent 540 (697) 1 773 (101) Non-controlling interests 7 3 12 6 The above condensed consolidated statement of comprehensive income should be read in conjunction with accompanying notes.

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29 July 2021 21 Financial tables, unaudited Consolidated statement of financial position (condensed) EUR million 30 June 2021 30 June 2020 31 December 2020 ASSETS Goodwill 5 270 5 609 5 074 Other intangible assets 1 768 2 287 1 953 Property, plant and equipment 1 802 1 770 1 783 Right-of-use assets 904 857 805 Investments in associated companies and joint ventures 224 166 233 Non-current financial investments (Note 6) 761 682 745 Deferred tax assets (Note 5) 1 502 5 009 1 822 Other non-current financial assets (Note 6) 329 448 306 Defined benefit pension assets (Note 4) 5 670 4 935 5 038 Other non-current assets 237 225 217 Non-current assets 18 467 21 988 17 976 Inventories 2 392 2 865 2 242 Trade receivables (Note 6) 4 387 4 671 5 503 Contract assets 1 288 1 196 1 080 Prepaid expenses and accrued income 881 853 850 Current income tax assets 317 304 265 Other current financial assets (Note 6) 183 206 214 Current financial investments (Note 6) 1 499 399 1 121 Cash and cash equivalents (Note 6) 7 252 7 088 6 940 Current assets 18 198 17 582 18 215 Total assets 36 665 39 570 36 191 SHAREHOLDERS' EQUITY AND LIABILITIES Share capital 246 246 246 Share issue premium 411 434 443 Treasury shares (352) (352) (352) Translation differences (944) (494) (1 295) Fair value and other reserves 2 730 1 423 1 910 Reserve for invested unrestricted equity 15 698 15 627 15 656 Accumulated deficit (3 541) (1 644) (4 143) Total capital and reserves attributable to equity holders of the parent 14 248 15 241 12 465 Non-controlling interests 89 78 80 Total equity 14 337 15 319 12 545 Long-term interest-bearing liabilities (Notes 6, 8) 4 504 5 181 5 015 Long-term lease liabilities 807 729 721 Deferred tax liabilities 272 240 260 Defined benefit pension and post-employment liabilities (Note 4) 3 509 4 537 4 046 Contract liabilities 478 772 566 Deferred revenue and other long-term liabilities 520 624 541 Provisions (Note 7) 711 477 736 Non-current liabilities 10 800 12 560 11 885 Short-term interest-bearing liabilities (Notes 6, 8) 559 756 561 Short-term lease liabilities 223 227 189 Other financial liabilities (Note 6) 727 763 738 Current income tax liabilities 155 157 188 Trade payables (Note 6) 3 119 3 255 3 174 Contract liabilities 2 544 2 817 2 394 Accrued expenses, deferred revenue and other liabilities 3 373 2 986 3 721 Provisions (Note 7) 829 730 796 Current liabilities 11 528 11 690 11 761 Total shareholders' equity and liabilities 36 665 39 570 36 191 Shareholders' equity per share, EUR 2.53 2.72 2.22 Number of shares (1 000 shares, excluding treasury shares) 5 629 381 5 610 426 5 617 496 The above condensed consolidated statement of financial position should be read in conjunction with accompanying notes.

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29 July 2021 22 Financial tables, unaudited Consolidated statement of cash flows (condensed) EUR million Q2'21 Q2'20 Q1–Q2'21 Q1–Q2'20 Cash flow from operating activities Profit/(loss) for the period 351 99 614 (17) Adjustments 559 535 927 958 Depreciation and amortization 273 290 544 574 Restructuring charges 120 98 148 177 Financial income and expenses 67 10 123 65 Income tax expense 67 79 166 49 Loss/(gain) from non-current investments 2 21 (92) 28 Other 30 37 38 65 Cash from operations before changes in net working capital 910 634 1 541 941 Change in net working capital (664) (175) 136 (364) (Increase)/decrease in receivables (77) 219 1 014 641 (Increase)/decrease in inventories (136) (82) (114) 19 Decrease in non-interest-bearing liabilities (451) (312) (764) (1 024) Cash from operations 246 459 1 677 577 Interest received 9 8 25 16 Interest paid (59) (49) (122) 39 Income taxes paid, net (90) (85) (170) (165) Net cash from operating activities 106 333 1 410 467 Cash flow from investing activities Purchase of property, plant and equipment and intangible assets (113) (89) (272) (243) Proceeds from sale of property, plant and equipment and intangible assets 16 1 48 2 Acquisition of businesses, net of cash acquired (33) 0 (33) (104) Proceeds from disposal of businesses, net of disposed cash 0 0 0 7 Purchase of current financial investments (231) (300) (685) (391) Proceeds from maturities and sale of current financial investments 258 58 318 91 Purchase of non-current financial investments (16) (14) (42) (24) Proceeds from sale of non-current financial investments 84 34 133 57 Foreign exchange hedging of cash and cash equivalents1 2 57 (5) 75 Other 7 3 8 13 Net cash used in investing activities (26) (250) (530) (517) Cash flow from financing activities Purchase of a subsidiary's equity instruments 0 (2) 0 (2) Proceeds from long-term borrowings 3 1 093 15 1 593 Repayment of long-term borrowings (101) (172) (482) (211) Proceeds from/(repayment of) short-term borrowings 18 69 (50) 83 Payment of principal portion of lease liabilities (52) (56) (103) (123) Dividends paid (3) (1) (3) (16) Net cash (used in)/from financing activities (135) 931 (623) 1 324 Translation differences1 (8) (85) 55 (96) Net (decrease)/increase in cash and cash equivalents (63) 929 312 1 178 Cash and cash equivalents at beginning of period 7 315 6 159 6 940 5 910 Cash and cash equivalents at end of period 7 252 7 088 7 252 7 088 1In 2021, Nokia changed the presentation of the cash flows relating to foreign exchange hedging of cash and cash equivalents from translation differences to cash flow from investing activities. The comparative amounts for 2020 have been reclassified accordingly. Refer to Note 1, Basis of preparation. Consolidated statement of cash flows combines cash flows from both the continuing and the discontinued operations. The figures in the consolidated statement of cash flows cannot be directly traced from the statement of financial position without additional information as a result of acquisitions and disposals of subsidiaries and net foreign exchange differences arising on consolidation. The above condensed consolidated statement of cash flows should be read in conjunction with accompanying notes.

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29 July 2021 23 Financial tables, unaudited Consolidated statement of changes in shareholders' equity (condensed) EUR million Share capital Share issue premium Treasury shares Translation differences Fair value and other reserves Reserve for invested unrestricted equity Accumulated deficit Attributable to equity holders of the parent Non- controlling interests Total equity 1 January 2020 246 427 (352) (372) 1 382 15 607 (1 613) 15 325 76 15 401 Loss for the period 0 0 0 0 0 0 (23) (23) 6 (17) Other comprehensive loss 0 0 0 (122) 41 0 2 (78) 0 (78) Total comprehensive loss 0 0 0 (122) 41 0 (21) (101) 6 (95) Share-based payments 0 34 0 0 0 0 0 34 0 34 Excess tax benefit on share-based payments 0 4 0 0 0 0 0 4 0 4 Settlement of share-based payments 0 (31) 0 0 0 20 0 (12) 0 (12) Dividends 0 0 0 0 0 0 0 0 (4) (4) Acquisition of non-controlling interests 0 0 0 0 0 0 (10) (10) 0 (10) Total transactions with owners 0 7 0 0 0 20 (10) 17 (4) 13 30 June 2020 246 434 (352) (494) 1 423 15 627 (1 644) 15 241 78 15 319 1 January 2021 246 443 (352) (1 295) 1 910 15 656 (4 143) 12 465 80 12 545 Profit for the period 0 0 0 0 0 0 605 605 9 614 Other comprehensive income 0 0 0 351 819 0 (2) 1 168 3 1 171 Total comprehensive income 0 0 0 351 819 0 603 1 773 12 1 785 Share-based payments 0 33 0 0 0 0 0 33 0 33 Settlement of share-based payments 0 (65) 0 0 0 42 0 (23) 0 (23) Dividends 0 0 0 0 0 0 0 0 (2) (2) Other movements 0 0 0 0 0 0 (1) (1) 0 (1) Total transactions with owners 0 (32) 0 0 0 42 (1) 9 (2) 7 30 June 2021 246 411 (352) (944) 2 730 15 698 (3 541) 14 248 89 14 337 The above condensed consolidated statement of changes in shareholders' equity should be read in conjunction with accompanying notes.

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29 July 2021 24 Financial tables, unaudited Notes to Financial statements 1. BASIS OF PREPARATION This unaudited and condensed consolidated financial statement information of Nokia has been prepared in accordance with IAS 34, Interim Financial Reporting, and it should be read in conjunction with the consolidated financial statements for 2020 prepared in accordance with IFRS as published by the IASB and adopted by the EU. The same accounting policies, methods of computation and applications of judgment are followed in this financial statement information as was followed in the consolidated financial statements for 2020. Percentages and figures presented herein may include rounding differences and therefore may not add up precisely to the totals presented and may vary from previously published financial information. This financial report was authorized for issue by management on 29 July 2021. Net sales and operating profit of the Nokia Group, particularly in Mobile Networks, Network Infrastructure and Cloud and Network Services segments, are subject to seasonal fluctuations being generally highest in the fourth quarter and lowest in the first quarter of the year. This is mainly due to the seasonality in the spending cycles of communication service providers. Management has identified its regions as the relevant category to present disaggregated revenue. Nokia's primary customer base consists of companies that operate on a country specific or a regional basis and are subject to macroeconomic conditions specific to those regions. Further, although Nokia’s technology cycle is similar around the world, each country or region is inherently in a different stage of that cycle, often influenced by macroeconomic conditions. Each reportable segment, as described in Note 2, Segment Information, operates in every region as described in Note 3, Net Sales. No reportable segment has a specific revenue concentration in any region other than Nokia Technologies, which is included in Europe. Each type of customer, as disclosed in Note 3, Net Sales, operates in all regions. In 2017, Nokia and China Huaxin Post & Telecommunication Economy Development Center (China Huaxin) commenced operations of the joint venture Nokia Shanghai Bell (NSB). China Huaxin obtained the right to fully transfer its ownership interest in NSB to Nokia in exchange for a future cash settlement. To reflect this obligation, Nokia derecognized the non-controlling interest and records a financial liability in current liabilities in line with the option exercise period. Any changes in the estimated future cash settlement are recorded in financial income and expense. In the fourth quarter of 2020, Nokia reviewed the presentation of income and expenses related to its restructuring plans, pension plan curtailments and amendments as well as certain asset impairments. As a result, Nokia reclassified the restructuring and associated charges, pension curtailment and plan amendment income and expenses as well as certain impairment charges that were previously presented in other operating income and expenses to the functional line items to enhance the relevance of information provided in Nokia’s consolidated income statement. The comparative amounts for 2020 have been reclassified accordingly. Related to Q2 2020, as a result of reclassification, Nokia’s cost of sales increased by EUR 65 million, R&D expenses increased by EUR 44 million, SG&A expenses increased by EUR 29 million and other operating expenses decreased by EUR 137 million compared to the previously reported amounts. Related to Q1–Q2 2020, as a result of reclassification, Nokia’s cost of sales increased by EUR 106 million, R&D expenses increased by EUR 63 million, SG&A expenses increased by EUR 47 million and other operating expenses decreased by EUR 216 million compared to the previously reported amounts. In the first quarter of 2021, Nokia reviewed the presentation of cash flows related to foreign exchange hedging of cash and cash equivalents. As a result, Nokia reclassified the results of foreign exchange hedging of cash and cash flows previously presented in translation differences to the cash flow from investing activities to enhance the relevance of information provided in Nokia’s consolidated statement of cash flows. The comparative amounts for 2020 have been reclassified accordingly. Related to Q2 2020, as a result of the reclassification, the net cash used in investing activities decreased by EUR 57 million and translation differences decreased by EUR 57 million compared to the previously reported amounts. Related to Q1–Q2 2020, as a result of the reclassification, the net cash used in investing activities decreased by EUR 75 million and translation differences decreased by EUR 75 million compared to the previously reported amounts. In 2020, the global economy and financial markets were severely affected by the COVID-19 pandemic. To date, the impact of COVID-19 on our financial performance and financial position has been limited, primarily relating to temporary factory closures in the first half of 2020. As of 30 June 2021, potential risks and uncertainties continue to exist related to the scope and duration of the COVID-19 impact as well as the pace and shape of the economic recovery, and it is impossible to predict with accuracy the precise impact of such risks on our business.

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29 July 2021 25 Financial tables, unaudited Comparable and constant currency measures Nokia presents financial information on a reported, comparable (until the fourth quarter of 2020 non-IFRS) and constant currency basis. Comparable measures presented in this document exclude intangible asset amortization and other purchase price fair value adjustments, goodwill impairments, restructuring related charges and certain other items affecting comparability. In order to allow full visibility on determining comparable results, information on items affecting comparability is presented separately for each of the components of profit or loss. Constant currency reporting provides additional information on change in financial measures on a constant currency basis in order to better reflect the underlying business performance. Therefore, change in financial measures at constant currency excludes the impact of changes in exchange rates in comparison to euro, our reporting currency. As comparable or constant currency financial measures are not defined in IFRS they may not be directly comparable with similarly titled measures used by other companies, including those in the same industry. The primary rationale for presenting these measures is that the management uses these measures in assessing the financial performance of Nokia and believes that these measures provide meaningful supplemental information on the underlying business performance of Nokia. These financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with IFRS. Refer to Note 10, Performance measures, for further details. Foreign exchange rates Nokia’s net sales are derived from various countries and invoiced in various currencies. Therefore, our business and results from operations are exposed to changes in foreign exchange rates between the euro, our reporting currency, and other currencies, such as the US dollar and the Chinese yuan. To mitigate the impact of changes in exchange rates on our results, we hedge operative forecasted net foreign exchange exposures, typically within a 12-month horizon, and apply hedge accounting in the majority of cases. The below table shows the exposure to different currencies for net sales and total costs. Q2'21 Q2'20 Q1'21 Net sales Total costs Net sales Total costs Net sales Total costs EUR ~25% ~25% ~25% ~25% ~25% ~25% USD ~50% ~50% ~50% ~45% ~50% ~45% CNY ~5% ~5% ~5% ~10% ~5% ~10% Other ~20% ~20% ~20% ~20% ~20% ~20% Total 100% 100% 100% 100% 100% 100% End of Q2'21 balance sheet rate 1 EUR = 1.19 USD, end of Q2'20 balance sheet rate 1 EUR = 1.12 USD and end of Q1'21 balance sheet rate 1 EUR = 1.17 USD New and amended standards and interpretations The amendments to IFRS standards that became effective on 1 January 2021, did not have a material impact on Nokia's consolidated financial statements. New standards and amendments to existing standards issued by the IASB that are not yet effective are not expected to have a material impact on Nokia's consolidated financial statements when adopted.

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29 July 2021 26 Financial tables, unaudited 2. SEGMENT INFORMATION Nokia has four operating and reportable segments for the financial reporting purposes: (1) Mobile Networks, (2) Network Infrastructure, (3) Cloud and Network Services and (4) Nokia Technologies. Segment-level information for Group Common and Other is also presented. In addition, Nokia provides net sales disclosure for the following businesses within the Network Infrastructure segment: (i) IP Networks, (ii) Optical Networks, (iii) Fixed Networks and (iv) Submarine Networks. Nokia adopted its current operational and reporting structure on 1 January 2021. The reporting structure was revised to reflect Nokia’s new strategy and operational model which is aligned with the way the management evaluates the operational performance of Nokia and allocates resources. Previously Nokia had three reportable segments: (1) Networks, (2) Nokia Software and (3) Nokia Technologies. Furthermore, Networks reportable segment consisted of four aggregated operating segments: (1) Mobile Networks, (2) Global Services, (3) Fixed Networks and (4) IP/Optical Networks. The most significant changes to the operational and reporting structure are the reclassifications of the following product areas: • Network management was reclassified from Nokia Software to Mobile Networks • Submarine Networks was reclassified from Group Common and Other to Network Infrastructure • Packet Core was reclassified from IP/Optical Networks to Cloud and Network Services • Managed Services, Network Cognitive Services and Enterprise Solution Services were reclassified from Global Services to Cloud and Network Services • Digital Automation and Analytics & IoT was reclassified from Group Common and Other to Cloud and Network Services Segment information for 2020 has been recast for comparability purposes according to the new operating and reporting structure. The President and CEO is the chief operating decision-maker and monitors the operating results of segments for the purpose of assessing performance and making decisions about resource allocation. Key financial performance measures of the segments include primarily net sales and operating profit. The evaluation of segment performance and allocation of resources is primarily based on comparable operating profit which the management believes is the most relevant measure for this purpose. Comparable operating profit excludes intangible asset amortization and other purchase price fair value adjustments, goodwill impairments, restructuring related charges and certain other items affecting comparability. Accounting policies of the segments are the same as those described in Note 2, Significant accounting policies in the consolidated financial statements for 2020, except that items affecting comparability are excluded from the measurement of comparable measures. For more information on comparable measures, refer to Notes 1, Basis of preparation and 10, Performance Measures. Inter-segment revenues and transfers are accounted for as if the revenues were to third parties, that is, at current market prices. Mobile Networks The Mobile Networks operating segment offers technologies for Radio Access Networks (RAN) as well as Microwave Radio Links (MWR) for transport networks. RAN includes 3GPP radio technologies ranging from 2G/GSM to 5G/NR in licensed and unlicensed spectrum for both macro and small cell deployments. In addition to RAN and MWR products, the Mobile Networks operating segment provides associated network management solutions as well as network planning, network optimization, network deployment and technical support services. Network Infrastructure The Network Infrastructure operating segment serves communication service providers, enterprises, webscales and public sector customers. It comprises the following businesses: (i) Optical Networks, which provides optical transport networks for metro, regional, longhaul and ultra- longhaul applications; (ii) IP Networks, which provides IP networks and services for residential, mobile, enterprise and cloud applications; (iii) Fixed Networks, which provides fiber, fixed wireless access, and copper technologies; and (iv) Submarine Networks, which offers undersea cable transmission. Cloud and Network Services The Cloud and Network Services operating segment is built around software and the cloud and is focused on driving leadership in cloud-native software and as-a-service deliver models, as demand for critical networks accelerates; and with strong market positions in communications software, private wireless networks, and cognitive (or intelligent) services. The Cloud and Network Services portfolio encompasses core networks, including both voice and packet core; business applications covering areas like security and digital operations; cloud and cognitive services; and enterprise solutions covering private wireless and industrial automation. Nokia Technologies The Nokia Technologies operating segment, building on decades of innovation and R&D leadership in technologies used in virtually all mobile devices used today, is expanding the Nokia patent licensing business, reintroducing the Nokia brand to smartphones through brand licensing, and establishing a technology licensing business. The majority of net sales and related costs and expenses attributable to licensing and patenting the patent portfolio is recorded in Nokia Technologies, while each segment separately records its own research and development expenses. Group Common and Other Group Common and Other includes Radio Frequency Systems which is managed as a separate entity. In addition, Group Common and Other includes Nokia Bell Labs’ operating expenses, certain corporate-level and centrally managed operating expenses, as well as fair value gains and losses on investments in unlisted venture funds, including investments managed by NGP Capital.

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29 July 2021 27 Financial tables, unaudited Mobile Networks Q2'21 Q2'20 EUR million Comparable Items affecting comparability Reported Comparable Items affecting comparability Reported Net sales 2 380 0 2 380 2 424 0 2 424 Gross profit 973 (31) 942 875 (28) 848 Gross margin % 40.9% 39.6% 36.1% 35.0% Operating profit 249 (31) 219 183 (79) 104 Operating margin % 10.5% 9.2% 7.5% 4.3% Other segment items Depreciation and amortization (83) (16) (99) (88) (17) (105) Share of results of associated companies and joint ventures 0 0 0 6 0 6 EBITDA 332 (15) 318 277 (62) 215 Q1–Q2'21 Q1–Q2'20 EUR million Comparable Items affecting comparability Reported Comparable Items affecting comparability Reported Net sales 4 642 0 4 642 4 769 (1) 4 768 Gross profit 1 724 (39) 1 686 1 605 (51) 1 553 Gross margin % 37.1% 36.3% 33.7% 32.6% Operating profit 326 (63) 263 197 (137) 60 Operating margin % 7.0% 5.7% 4.1% 1.3% Other segment items Depreciation and amortization (166) (32) (198) (175) (34) (209) Share of results of associated companies and joint ventures (4) 0 (4) 2 0 2 EBITDA 488 (31) 457 374 (103) 271

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29 July 2021 28 Financial tables, unaudited Network Infrastructure Q2'21 Q2'20 EUR million Comparable Items affecting comparability Reported Comparable Items affecting comparability Reported Net sales(1) 1 778 0 1 778 1 545 0 1 545 Gross profit 628 (9) 620 537 (15) 523 Gross margin % 35.3% 34.9% 34.8% 33.9% Operating profit/(loss) 162 (96) 66 66 (115) (49) Operating margin % 9.1% 3.7% 4.3% (3.2)% Other segment items Depreciation and amortization (52) (74) (126) (51) (81) (131) Share of results of associated companies and joint ventures 0 0 0 0 0 0 EBITDA 214 (22) 192 117 (34) 82 ¹In Q2´21, IP Networks net sales of EUR 630 million, Optical Networks net sales of EUR 391 million, Fixed Networks net sales of EUR 531 million and Submarine Networks net sales of EUR 226 million. Q1–Q2'21 Q1–Q2'20 EUR million Comparable Items affecting comparability Reported Comparable Items affecting comparability Reported Net sales(1) 3 505 0 3 505 2 964 0 2 963 Gross profit 1 230 (12) 1 219 998 (26) 972 Gross margin % 35.1% 34.8% 33.7% 32.8% Operating profit/(loss) 349 (178) 170 34 (209) (174) Operating margin % 10.0% 4.9% 1.1% (5.9)% Other segment items Depreciation and amortization (100) (146) (247) (101) (157) (258) Share of results of associated companies and joint ventures (1) 0 (1) 0 0 0 EBITDA 448 (32) 416 135 (52) 84 ¹In Q1-Q2´21, IP Networks net sales of EUR 1 255 million, Optical Networks net sales of EUR 791 million, Fixed Networks net sales of EUR 1 022 million and Submarine Networks net sales of EUR 437 million.

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29 July 2021 29 Financial tables, unaudited Cloud and Network Services Q2'21 Q2'20 EUR million Comparable Items affecting comparability Reported Comparable Items affecting comparability Reported Net sales 703 0 703 718 0 718 Gross profit 251 (30) 221 258 (29) 229 Gross margin % 35.7% 31.4% 35.9% 31.9% Operating profit/(loss) 10 (51) (41) (6) (48) (54) Operating margin % 1.4% (5.8)% (0.8)% (7.5)% Other segment items Depreciation and amortization (25) (7) (32) (29) (8) (37) Share of results of associated companies and joint ventures 1 0 1 1 0 1 EBITDA 36 (44) (8) 24 (40) (16) Q1–Q2'21 Q1–Q2'20 EUR million Comparable Items affecting comparability Reported Comparable Items affecting comparability Reported Net sales 1 377 0 1 377 1 462 0 1 462 Gross profit 476 (34) 441 513 (44) 469 Gross margin % 34.6% 32.0% 35.1% 32.1% Operating loss (10) (69) (79) (45) (77) (123) Operating margin % (0.7)% (5.7)% (3.1)% (8.4)% Other segment items Depreciation and amortization (49) (15) (64) (59) (16) (75) Share of results of associated companies and joint ventures 2 0 2 2 0 2 EBITDA 41 (54) (13) 16 (61) (46)

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29 July 2021 30 Financial tables, unaudited Nokia Technologies Q2'21 Q2'20 EUR million Comparable Items affecting comparability Reported Comparable Items affecting comparability Reported Net sales 401 0 401 341 0 341 Gross profit 400 0 400 339 0 339 Gross margin % 99.8% 99.8% 99.4% 99.4% Operating profit 332 0 331 272 (1) 271 Operating margin % 82.8% 82.5% 79.8% 79.5% Other segment items Depreciation and amortization (8) 0 (8) (10) 0 (10) Share of results of associated companies and joint ventures (1) 0 (1) 0 0 0 EBITDA 339 0 338 282 (1) 281 Q1–Q2'21 Q1–Q2'20 EUR million Comparable Items affecting comparability Reported Comparable Items affecting comparability Reported Net sales 766 0 766 689 0 689 Gross profit 764 0 764 684 0 684 Gross margin % 99.7% 99.7% 99.3% 99.3% Operating profit 618 (1) 617 552 (1) 551 Operating margin % 80.7% 80.5% 80.1% 80.0% Other segment items Depreciation and amortization (17) 0 (17) (19) 0 (20) Share of results of associated companies and joint ventures (1) 0 (1) 0 0 0 EBITDA 634 (1) 633 571 (1) 571

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29 July 2021 31 Financial tables, unaudited Group Common and Other Q2'21 Q2'20 EUR million Comparable Items affecting comparability Reported Comparable Items affecting comparability Reported Net sales 62 0 62 75 0 75 Gross (loss)/profit (3) 0 (3) 6 (4) 2 Gross margin % (4.8)% (4.8)% 8.0% 2.7% Operating loss (70) (20) (90) (91) (11) (103) Operating margin % (112.9)% (145.2)% (121.3)% (137.3)% Other segment items Depreciation and amortization (7) 0 (8) (6) 0 (7) Share of results of associated companies and joint ventures 0 0 0 0 0 0 EBITDA (63) (20) (82) (85) (11) (96) Q1–Q2'21 Q1–Q2'20 EUR million Comparable Items affecting comparability Reported Comparable Items affecting comparability Reported Net sales 119 0 119 143 0 143 Gross (loss)/profit (5) 0 (5) 4 (5) (1) Gross margin % (4.2)% (4.2)% 2.8% (0.7)% Operating loss (48) (7) (55) (199) (21) (221) Operating margin % (40.3)% (46.2)% (139.2)% (154.5)% Other segment items Depreciation and amortization (18) (1) (18) (13) (1) (13) Share of results of associated companies and joint ventures 0 0 0 (1) 0 (1) EBITDA (30) (6) (37) (187) (20) (209)

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29 July 2021 32 Financial tables, unaudited Nokia Group Q2'21 Q2'20 EUR million Comparable Items affecting comparability Reported Comparable Items affecting comparability Reported Net sales 5 313 0 5 313 5 093 (1) 5 092 Gross profit 2 249 (70) 2 179 2 017 (75) 1 942 Gross margin % 42.3% 41.0% 39.6% 38.1% Operating profit 682 (198) 484 423 (253) 170 Operating margin % 12.8% 9.1% 8.3% 3.3% Other segment items Depreciation and amortization (176) (97) (273) (184) (106) (290) Share of results of associated companies and joint ventures 0 0 0 6 0 6 EBITDA 858 (101) 757 613 (147) 466 Q1–Q2'21 Q1–Q2'20 EUR million Comparable Items affecting comparability Reported Comparable Items affecting comparability Reported Net sales 10 389 0 10 389 10 007 (1) 10 005 Gross profit 4 189 (85) 4 105 3 804 (126) 3 678 Gross margin % 40.3% 39.5% 38.0% 36.8% Operating profit 1 234 (318) 916 539 (445) 94 Operating margin % 11.9% 8.8% 5.4% 0.9% Other segment items Depreciation and amortization (350) (194) (544) (367) (208) (574) Share of results of associated companies and joint ventures (5) 0 (5) 3 0 3 EBITDA 1 579 (124) 1 455 909 (237) 671

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29 July 2021 33 Financial tables, unaudited Reconciliation of the segments to the Group Q2'21 Q1–Q2'21 EUR million Comparable Items affecting comparability Reported Comparable Items affecting comparability Reported Net sales Mobile Networks 2 380 0 2 380 4 642 0 4 642 Network Infrastructure 1 778 0 1 778 3 505 0 3 505 Cloud and Network Services 703 0 703 1 377 0 1 377 Nokia Technologies 401 0 401 766 0 766 Group Common and Other 62 0 62 119 0 119 Segment total 5 324 0 5 324 10 409 0 10 409 Eliminations (10) 0 (10) (20) 0 (20) Nokia Group 5 313 0 5 313 10 389 0 10 389 Gross profit Mobile Networks 973 (31) 942 1 724 (39) 1 686 Network Infrastructure 628 (9) 620 1 230 (12) 1 219 Cloud and Network Services 251 (30) 221 476 (34) 441 Nokia Technologies 400 0 400 764 0 764 Group Common and Other (3) 0 (3) (5) 0 (5) Segment total 2 249 (70) 2 179 4 189 (85) 4 105 Nokia Group 2 249 (70) 2 179 4 189 (85) 4 105 Operating profit/(loss) Mobile Networks 249 (31) 219 326 (63) 263 Network Infrastructure 162 (96) 66 349 (178) 170 Cloud and Network Services 10 (51) (41) (10) (69) (79) Nokia Technologies 332 0 331 618 (1) 617 Group Common and Other (70) (20) (90) (48) (7) (55) Segment total 682 (198) 484 1 234 (318) 916 Nokia Group 682 (198) 484 1 234 (318) 916

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29 July 2021 34 Financial tables, unaudited Q2'20 Q1–Q2'20 EUR million Comparable Items affecting comparability Reported Comparable Items affecting comparability Reported Net sales Mobile Networks 2 424 0 2 424 4 769 (1) 4 768 Network Infrastructure 1 545 0 1 545 2 964 0 2 963 Cloud and Network Services 718 0 718 1 462 0 1 462 Nokia Technologies 341 0 341 689 0 689 Group Common and Other 75 0 75 143 0 143 Segment total 5 103 0 5 103 10 027 (1) 10 025 Eliminations (11) 0 (11) (20) 0 (20) Nokia Group 5 093 (1) 5 092 10 007 (1) 10 005 Gross profit Mobile Networks 875 (28) 848 1 605 (51) 1 553 Network Infrastructure 537 (15) 523 998 (26) 972 Cloud and Network Services 258 (29) 229 513 (44) 469 Nokia Technologies 339 0 339 684 0 684 Group Common and Other 6 (4) 2 4 (5) (1) Segment total 2 017 (75) 1 942 3 804 (126) 3 678 Nokia Group 2 017 (75) 1 942 3 804 (126) 3 678 Operating profit/(loss) Mobile Networks 183 (79) 104 197 (137) 60 Network Infrastructure 66 (115) (49) 34 (209) (174) Cloud and Network Services (6) (48) (54) (45) (77) (123) Nokia Technologies 272 (1) 271 552 (1) 551 Group Common and Other (91) (11) (103) (199) (21) (221) Segment total 423 (253) 170 539 (445) 94 Nokia Group 423 (253) 170 539 (445) 94

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29 July 2021 35 Financial tables, unaudited 3. NET SALES Net sales by region EUR million Q2'21 Q2'20¹ YoY change Q1–Q2'21 Q1–Q2'20¹ YoY change Asia Pacific 582 643 (9)% 1 162 1 343 (13)% Europe 1 662 1 565 6% 3 136 2 999 5% Greater China 374 338 11% 776 671 16% India 290 179 62% 538 392 37% Latin America 323 216 50% 616 497 24% Middle East & Africa 423 426 (1)% 838 908 (8)% North America 1 659 1 725 (4)% 3 324 3 196 4% Total 5 313 5 092 4% 10 389 10 005 4% 1In the first quarter of 2021, Nokia aligned how it externally reports financial information on a regional basis with its internal reporting structure. As a result, India which was earlier presented as part of Asia Pacific region is presented as a separate region. In addition, certain countries are now presented as part of a different region. The comparative net sales by region amounts for Q2’20 and Q1–Q2´20 have been recast accordingly. Net sales by customer type EUR million Q2'21 Q2'20 YoY change Q1–Q2'21 Q1–Q2'20 YoY change Communication service providers 4 277 4 180 2% 8 375 8 245 2% Enterprise 357 376 (5)% 712 687 4% Licensees 401 341 18% 766 689 11% Other1 278 195 43% 536 384 40% Total 5 313 5 092 4% 10 389 10 005 4% 1Includes net sales of Submarine Networks which operates in a different market, and Radio Frequency Systems (RFS), which is being managed as a separate entity, and certain other items, such as eliminations of inter-segment revenues and certain items related to purchase price allocation. Submarine Networks and RFS net sales include also revenue from communication service providers and enterprise customers.

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29 July 2021 36 Financial tables, unaudited 4. PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS Nokia operates a number of post-employment plans in various countries including both defined contribution and defined benefit plans. Defined benefit plans include pension plans and other post-employment benefit plans, providing retirement healthcare benefits and life insurance coverage. 95% of Nokia’s defined benefit obligation and 98% of plan assets fair values were remeasured as of 30 June 2021. Nokia's pension and post-retirement plans in the United States have been remeasured by updated valuations from an external actuary and the main pension plans outside of the US have been remeasured based upon updated asset valuations and changes in the discount rates during the reporting period. The impact of not remeasuring other pension and post-employment obligations is considered not material. As of 30 June 2021, the weighted average discount rates used in remeasurement of the most significant plans were as follows (comparatives as of 31 December 2020): U.S. Pension 2.28% (1.94 %), U.S. Opeb 2.34% (1.97%), Germany 0.75 % (0.35 %) and U.K. 1.81 % (1.26 %). The funded status of Nokia’s defined benefit plans (before the effect of the asset ceiling) increased from EUR 3 194 million, or 114.1%, as of 31 March 2021 to EUR 3 620 million, or 116.0% as of 30 June 2021. During the quarter the global defined benefit plan asset portfolio was invested approximately 73% in fixed income, 6% in equities and 21% in other asset classes, mainly private equity and real estate. Market conditions for financial assets have continued to stabilize after COVID-19 related stress in 2020. Should there be another increase in financial market volatility, fair values of pension assets may fluctuate in future quarters. Change in pension and post-employment net asset/(liability) 30 June 2021 30 June 2020 31 December 2020 EUR million Pensions1 US Opeb Total Pensions1 US Opeb Total Pensions1 US Opeb Total Net asset/(liability) recognized 1 January 2 572 (1 580) 992 2 348 (1 861) 487 2 348 (1 861) 487 Recognized in income statement (81) (14) (95) (87) (26) (113) (196) 43 (153) Recognized in other comprehensive income 964 128 1 092 96 (122) (26) 707 (83) 624 Contributions and benefits paid 97 (10) 87 82 (4) 78 186 6 192 Exchange differences and other movements2 (128) 213 85 (19) (9) (28) (473) 315 (158) Net asset/(liability) recognized at the end of the period 3 424 (1 263) 2 161 2 420 (2 022) 398 2 572 (1 580) 992 1Includes pensions, retirement indemnities and other post-employment plans. 2Includes Section 420 transfers, medicare subsidies, and other transfers. Funded status EUR million 30 June 2021 31 March 2021 31 December 2020 30 September 2020 30 June 2020 Defined benefit obligation1 (22 599) (22 630) (23 501) (24 554) (25 615) Fair value of plan assets1 26 219 25 824 25 688 26 302 27 058 Funded status 3 620 3 194 2 187 1 748 1 443 Effects of asset ceiling (1 459) (1 368) (1 195) (1 191) (1 045) Net asset recognized at the end of the period 2 161 1 826 992 557 398 1The comparative amounts for defined benefit obligation and fair value of plan assets have been changed for each quarter in 2020 to reflect the timing of US benefit payments. 5. DEFERRED TAXES At 30 June 2021, Nokia has recognized deferred tax assets of EUR 1.5 billion (EUR 1.8 billion at 31 December 2020), significant portion of which relate to unused tax losses, unused tax credits and deductible temporary differences in the United States (EUR 0.5 billion). Nokia continually evaluates the probability of utilizing its deferred tax assets and considers both favorable and unfavorable factors in its assessment. Deferred tax assets are recognized to the extent it is probable that future taxable profit will be available against which the unused tax losses, unused tax credits and deductible temporary differences can be utilized in the relevant jurisdictions. Nokia has an established pattern of sufficient profitability to conclude that it is probable that it will be able to utilize the deferred tax assets in the United States. At 30 June 2021, Nokia has unrecognized deferred tax assets of approximately EUR 8 billion (EUR 8 billion at 31 December 2020), the majority of which relate to France (approximately EUR 4 billion) and Finland (approximately EUR 3 billion). These deferred tax assets have not been recognized due to uncertainty regarding their utilization. A significant portion of the French unrecognized deferred tax assets are indefinite in nature and available against future French tax liabilities, subject to a limitation of 50% of annual taxable profits. The majority of Finnish unrecognized deferred tax assets are not subject to expiry and are available against future Finnish tax liabilities.

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29 July 2021 37 Financial tables, unaudited 6. FAIR VALUE OF FINANCIAL INSTRUMENTS Financial assets and liabilities recorded at fair value are categorized based on the amount of unobservable inputs used to measure their fair value. Three hierarchical levels are based on an increasing amount of judgment associated with the inputs used to derive fair valuation for these assets and liabilities; Level 1 being market values for exchange traded products, Level 2 being primarily based on quotes from third-party pricing services and Level 3 requiring most management judgment. For more information about the valuation methods and principles, refer to Note 2, Significant accounting policies and Note 24, Fair value of financial instruments, in the consolidated financial statements for 2020. Items carried at fair value in the following table are measured at fair value on a recurring basis. EUR million Carrying amounts Fair value Amortized cost Fair value through profit or loss Fair value through other comprehensive income 30 June 2021 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Total Total Non-current financial investments 0 23 0 738 0 0 0 761 761 Other non-current financial assets 120 0 99 0 0 110 0 329 329 Other current financial assets including derivatives 45 0 111 8 0 19 0 183 183 Trade receivables 0 0 0 0 0 4 387 0 4 387 4 387 Current financial investments 138 0 1 107 0 0 254 0 1 499 1 499 Cash and cash equivalents 4 756 0 2 496 0 0 0 0 7 252 7 252 Total financial assets 5 059 23 3 813 746 0 4 770 0 14 411 14 411 Long-term interest-bearing liabilities 4 504 0 0 0 0 0 0 4 504 4 700 Other long-term financial liabilities 0 0 0 75 0 0 0 75 75 Short-term interest-bearing liabilities 559 0 0 0 0 0 0 559 562 Other short-term financial liabilities including derivatives 0 0 256 471 0 0 0 727 727 Trade payables 3 119 0 0 0 0 0 0 3 119 3 119 Total financial liabilities 8 182 0 256 546 0 0 0 8 984 9 183 EUR million Carrying amounts Fair value Amortized cost Fair value through profit or loss Fair value through other comprehensive income 31 December 2020 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Total Total Non-current financial investments 0 31 0 714 0 0 0 745 745 Other non-current financial assets 115 0 99 5 0 87 0 306 306 Other current financial assets including derivatives 22 0 169 8 0 15 0 214 214 Trade receivables 0 0 0 0 0 5 503 0 5 503 5 503 Current financial investments 134 0 882 0 0 105 0 1 121 1 121 Cash and cash equivalents 4 333 0 2 607 0 0 0 0 6 940 6 940 Total financial assets 4 604 31 3 757 727 0 5 710 0 14 829 14 829 Long-term interest-bearing liabilities 5 015 0 0 0 0 0 0 5 015 5 140 Other long-term financial liabilities 0 0 0 19 0 0 0 19 19 Short-term interest-bearing liabilities 561 0 0 0 0 0 0 561 561 Other short-term financial liabilities including derivatives 0 0 318 420 0 0 0 738 738 Trade payables 3 174 0 0 0 0 0 0 3 174 3 174 Total financial liabilities 8 750 0 318 439 0 0 0 9 507 9 632 Lease liabilities are not included in the fair value of financial instruments. Level 3 Financial assets include a large number of investments in unlisted equities and unlisted venture funds, including investments managed by NGP Capital specializing in growth-stage investing. The fair value of level 3 investments is determined using one or more valuation techniques with unobservable inputs, where the use of the market approach generally consists of using comparable market transactions, while the use of the income approach generally consists of calculating the net present value of expected future cash flows. Level 3 Financial liabilities include a conditional obligation to China Huaxin related to Nokia Shanghai Bell. Reconciliation of the opening and closing balances on level 3 financial assets and liabilities: EUR million Level 3 Financial Assets Level 3 Financial Liabilities Balance as of 31 December 2020 727 (439) Net gains/(losses) in income statement 86 (63) Acquisitions through business combination 0 (48) Additions 36 0 Deductions (102) 4 Transfers out of level 3 (2) 0 Other movements 1 0 Balance as of 30 June 2021 746 (546) The gains and losses from venture fund and similar investments categorized in level 3 are included in other operating income and expenses. The gains and losses from other level 3 financial assets and liabilities are recorded in financial income and expenses. A net gain of EUR 20 million (net gain of EUR 102 million in 2020) related to level 3 financial instruments held at 30 June 2021, was included in the profit and loss during 2021.

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29 July 2021 38 Financial tables, unaudited 7. PROVISIONS EUR million Restructuring Warranty Litigation Environmental Project losses Divestment- related Material liability Other1 Total As of 1 January 2021 441 220 73 113 276 49 130 230 1 532 Translation differences 0 1 2 5 0 0 0 6 14 Reclassification (4) 0 (2) 0 0 (12) 0 17 (1) Charged to income statement Additions 159 86 21 6 0 12 4 53 341 Reversals (11) (7) (6) (1) (9) (3) (20) (6) (63) Total charged to income statement 148 79 15 5 (9) 9 (16) 47 278 Utilized during period2 (129) (83) (7) (4) (23) 0 (22) (15) (283) As of 30 June 2021 456 217 80 118 245 45 92 287 1 540 Non-current 211 20 15 103 176 43 16 128 711 Current 244 197 65 15 70 3 75 159 829 1Other provisions include provisions for various obligations such as indirect tax provisions, employee-related provisions other than restructuring provisions and asset retirement obligations. 2The utilization of restructuring provision includes items transferred to accrued expenses, of which EUR 53 million remained in accrued expenses as of 30 June 2021.

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29 July 2021 39 Financial tables, unaudited 8. INTEREST-BEARING LIABILITIES Carrying amount (EUR million) Issuer/borrower Instrument Currency Nominal (million) Final maturity 30 June 2021 30 June 2020 31 December 2020 Nokia Corporation 1.00% Senior Notes1 EUR 350 March 2021 0 350 350 Nokia Corporation 3.375% Senior Notes USD 500 June 2022 427 459 417 Nokia Corporation 2.00% Senior Notes EUR 750 March 2024 760 764 762 Nokia Corporation EIB R&D Loan EUR 500 February 2025 500 500 500 Nokia Corporation NIB R&D Loan2 EUR 250 May 2025 250 250 250 Nokia Corporation 2.375% Senior Notes EUR 500 May 2025 497 496 497 Nokia Corporation 2.00% Senior Notes EUR 750 March 2026 761 763 762 Nokia Corporation 4.375% Senior Notes USD 500 June 2027 454 492 448 Nokia of America Corporation 6.50% Senior Notes USD 74 January 2028 63 66 61 Nokia Corporation 3.125% Senior Notes EUR 500 May 2028 497 497 497 Nokia of America Corporation 6.45% Senior Notes USD 206 March 2029 175 186 169 Nokia Corporation 6.625% Senior Notes USD 500 May 2039 538 596 541 Nokia Corporation and various subsidiaries Other liabilities 141 518 322 Total 5 063 5 937 5 576 1Nokia redeemed EUR 350 million of the 1.00% Senior Notes due March 2021 in February 2021. 2The loan from the Nordic Investment Bank (NIB) is repayable in three equal annual installments in 2023, 2024 and 2025. Significant credit facilities and funding programs Utilized (million) Financing arrangement Committed / uncommitted Currency Nominal (million) 30 June 2021 30 June 2020 31 December 2020 Revolving Credit Facility1 Committed EUR 1 500 0 0 0 Finnish Commercial Paper Programme Uncommitted EUR 750 0 20 0 Euro-Commercial Paper Programme Uncommitted EUR 1 500 0 0 0 Euro Medium Term Note Programme2 Uncommitted EUR 5 000 2 500 2 850 2 850 1Nokia exercised its option to extend the maturity date of the Revolving Credit Facility in June 2021. Subsequent to the extension, the facility has its maturity in June 2026, except for EUR 88 million having its maturity in June 2024. 2All euro-denominated bonds have been issued under the Euro Medium Term Note Programme. All borrowings and credit facilities presented in the tables above are senior unsecured and have no financial covenants.

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29 July 2021 40 Financial tables, unaudited 9. COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS EUR million 30 June 2021 30 June 2020 31 December 2020 Contingent liabilities on behalf of Group companies Guarantees issued by financial institutions Commercial guarantees 1 180 1 224 1 107 Non-commercial guarantees 446 445 450 Corporate guarantees Commercial guarantees 457 910 453 Non-commercial guarantees 52 57 53 Financing commitments Customer finance commitments 42 235 180 Venture fund commitments 158 231 189 Other contingent liabilities and financing commitments1 Other guarantees and financing commitments 8 18 11 1Other contingent liabilities and financing commitments exclude committed lease contracts that have not yet commenced and purchase obligations. Refer to Note 30, Commitments, contingencies and legal proceedings, in the consolidated financial statements for 2020. The amounts in the table above represent the maximum principal amount of commitments and contingencies, and these amounts do not reflect management's expected outcomes. Intellectual property rights litigations In 2019 and 2020, Nokia filed patent infringement lawsuits against Lenovo in four countries, including United States, regarding 19 Nokia patents used in Lenovo’s products. Lenovo responded with counterclaims and nullity proceedings, and in 2020, Lenovo filed an action in the United States against Nokia alleging breach of RAND obligations and other claims. In the first quarter of 2021, Nokia concluded a multi- year, multi-technology patent cross-license agreement with Lenovo. The agreement resolves all pending patent litigation and other proceedings between the two parties, in all jurisdictions. Under the agreement, Lenovo will make a net balancing payment to Nokia. In 2019, Nokia commenced patent infringement proceedings against Daimler in Germany regarding ten Nokia patents relevant to the 3G and 4G cellular standards used in Daimler’s connected cars. In 2020, one of the cases was referred to the Court of Justice of the European Union on questions relating to standard essential patent litigation. In the second quarter of 2021, Nokia and Daimler announced that they have signed a patent licensing agreement under which Nokia licenses mobile telecommunications technology to Daimler and receives payment in return. The parties have agreed to settle all pending litigation between Daimler and Nokia, including the complaint by Daimler against Nokia to the European Commission. Invalidation actions brought by Daimler’s suppliers and their respective complaints to the European Commission regarding Nokia’s licensing practice continue. On 1 July 2021, Nokia commenced patent infringement proceedings against Oppo, OnePlus and Realme in Asia and Europe. Across actions in 7 countries, more than 30 patents are in suit, covering a mix of cellular standards and technologies such as connectivity, user interface and security.

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29 July 2021 41 Financial tables, unaudited 10. PERFORMANCE MEASURES Certain financial measures presented in this interim report are not measures of financial performance, financial position or cash flows defined in IFRS, and therefore may not be directly comparable with financial measures used by other companies, including those in the same industry. The primary rationale for presenting these measures is that the management uses these measures in assessing the financial performance of Nokia and believes that these measures provide meaningful supplemental information on the underlying business performance. These financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with IFRS. The following tables provide summarized information on the performance measures included in this interim report as well as reconciliations of the performance measures to the amounts presented in the financial statements. Performance measure Definition Purpose Comparable measures Comparable measures exclude intangible asset amortization and other purchase price fair value adjustments, goodwill impairments, restructuring related charges and certain other items affecting comparability. Reconciliation of reported and comparable consolidated statement of income is presented below. We believe that our comparable results provide meaningful supplemental information to both management and investors regarding Nokia’s underlying business performance by excluding certain items of income and expenses that may not be indicative of Nokia’s business operating results. Comparable operating profit is used also in determining management remuneration. Constant currency net sales / Net sales adjusted for currency fluctuations When net sales are reported on a constant currency basis / adjusted for currency fluctuations, exchange rates used to translate the amounts in local currencies to euro, our reporting currency, are the average actual periodic exchange rates for the comparative financial period. Therefore, the constant currency net sales / net sales adjusted for currency fluctuations exclude the impact of changes in exchange rates during the current period in comparison to euro. We provide additional information on net sales on a constant currency basis / adjusted for currency fluctuations in order to better reflect the underlying business performance. Comparable return on invested capital (ROIC) Comparable operating profit after tax, last four quarters / Invested capital, average of last five quarters’ ending balances. Calculation of comparable return on invested capital is presented below. Comparable return on invested capital is used to measure how efficiently Nokia uses its capital to generate profits from its operations. Comparable operating profit after tax Comparable operating profit - (comparable operating profit x comparable income tax expense / comparable profit before tax) Comparable operating profit after tax indicates the profitability of Nokia's underlying business operations after deducting the income tax impact. We use comparable operating profit after tax to calculate comparable return on invested capital. Invested capital Total equity + total interest-bearing liabilities - total cash and current financial investments Invested capital indicates the book value of capital raised from equity and debt instrument holders less cash and liquid assets held by Nokia. We use invested capital to calculate comparable return on invested capital. Total cash and current financial investments ("Total cash") Total cash and current financial investments consist of cash and cash equivalents and current financial investments. Total cash and current financial investments is used to indicate funds available to Nokia to run its current and invest in future business activities as well as provide return for security holders. Net cash and current financial investments ("Net cash") Net cash and current financial investments equals total cash and current financial investments less long-term and short-term interest-bearing liabilities. Lease liabilities are not included in interest-bearing liabilities. Reconciliation of net cash and current financial investments to the amounts in the consolidated statement of financial position is presented below. Net cash and current financial investments is used to indicate Nokia's liquidity position after cash required to settle the interest-bearing liabilities. Free cash flow Net cash from/(used in) operating activities - purchases of property, plant and equipment and intangible assets (capital expenditures) + proceeds from sale of property, plant and equipment and intangible assets – purchase of non-current financial investments + proceeds from sale of non-current financial investments. Reconciliation of free cash flow to the amounts in the consolidated statement of cash flows is presented below. Free cash flow is the cash that Nokia generates after net investments to tangible, intangible and non-current financial investments and it represents the cash available for distribution among its security holders. It is a measure of cash generation, working capital efficiency and capital discipline of the business. Capital expenditure Purchases of property, plant and equipment and intangible assets (excluding assets acquired under business combinations). We use capital expenditure to describe investments in profit generating activities in the future. Recurring/One-time measures Recurring measures, such as recurring net sales, are based on revenues that are likely to continue in the future. Recurring measures exclude e.g. the impact of catch-up net sales relating to prior periods. One-time measures, such as one- time net sales, reflect the revenues that are not likely to continue in the future. We use recurring/one-time measures to improve comparability between financial periods. EBITDA Operating profit/(loss) before depreciations and amortizations and adjusted for share of results of associated companies and joint ventures. We use EBITDA as a measure of Nokia's operating performance. Adjusted profit/(loss) Adjusted profit/(loss) equals the cash from operations before changes in net working capital subtotal in the consolidated statement of cash flows. We use adjusted profit/(loss) to provide a structured presentation when describing the cash flows. Recurring annual cost savings Reduction in cost of sales and operating expenses resulting from the cost savings program and the impact of which is considered recurring in nature. We use recurring annual cost savings measure to monitor the progress of our cost savings program established after the Alcatel-Lucent transaction against plan. Restructuring and associated charges, liabilities and cash outflows Charges, liabilities and cash outflows related to activities that either meet the strict definition of restructuring under IFRS or are closely associated with such activities. We use restructuring and associated charges, liabilities and cash outflows to measure the progress of our integration and transformation activities.

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29 July 2021 42 Financial tables, unaudited Comparable to reported reconciliation Q2'21 Net sales Cost of sales Research and developmen t expenses Selling, general and administrativ e expenses Other operating income and expenses Operating profit/(loss) Financial income and expenses Income tax (expense)/ benefit Profit/(loss) from continuing operations EUR million Comparable 5 313 (3 064) (1 011) (585) 29 682 (39) (104) 539 Restructuring and associated charges (66) (33) (41) (1) (141) (141) Amortization of acquired intangible assets (13) (84) (97) 20 (77) Settlement of legal disputes 80 80 80 Impairment of assets, net of impairment reversals (3) (7) (1) (21) (32) (32) Fair value changes of legacy IPR fund (16) (16) (16) Gain on sale of fixed assets 8 8 8 Change in financial liability to acquire NSB non-controlling interest 0 (28) (28) Deferred tax benefit due to tax rate changes 0 17 17 Items affecting comparability 0 (70) (52) (127) 51 (198) (28) 38 (189) Reported 5 313 (3 133) (1 063) (712) 80 484 (68) (66) 350 Q2'20 Net sales Cost of sales Research and developmen t expenses Selling, general and administrativ e expenses Other operating income and expenses Operating profit/(loss) Financial income and expenses Income tax (expense)/ benefit Profit/(loss) from continuing operations EUR million Comparable 5 093 (3 076) (953) (590) (50) 423 (27) (87) 316 Restructuring and associated charges (72) (31) (27) (130) 25 (105) Amortization of acquired intangible assets (16) (90) (106) 23 (83) Impairment of assets, net of impairment reversals (4) (14) (2) (19) 4 (15) Gain on sale of fixed assets 1 1 2 1 Release of acquisition-related fair value adjustments to deferred revenue and inventory (1) (1) 0 Change in financial liability to acquire NSB non-controlling interest 0 15 15 Legal entity restructuring 0 (45) (45) Items affecting comparability (1) (75) (59) (119) 0 (253) 15 7 (231) Reported 5 092 (3 151) (1 013) (709) (50) 170 (11) (80) 85

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29 July 2021 43 Financial tables, unaudited Q1–Q2'21 Net sales Cost of sales Research and developmen t expenses Selling, general and administrativ e expenses Other operating income and expenses Operating profit/(loss) Financial income and expenses Income tax (expense)/ benefit Profit/(loss) from continuing operations EUR million Comparable 10 389 (6 200) (1 985) (1 137) 166 1 234 (91) (224) 914 Amortization of acquired intangible assets (27) (167) (194) 41 (153) Restructuring and associated charges (80) (41) (55) (1) (177) (177) Settlement of legal disputes 80 80 80 Impairment of assets, net of impairment reversals (4) (7) (2) (21) (33) (33) Gain on sale of fixed assets 23 23 23 Fair value changes of legacy IPR fund (16) (16) (16) Costs associated with contract exit (1) (1) (1) Change in financial liability to acquire NSB non-controlling interest 0 (32) (32) Deferred tax benefit due to tax rate changes 0 17 17 Items affecting comparability 0 (85) (75) (224) 66 (318) (32) 58 (292) Reported 10 389 (6 285) (2 060) (1 360) 232 916 (123) (166) 622 Q1–Q2'20 Net sales Cost of sales Research and developmen t expenses Selling, general and administrativ e expenses Other operating income and expenses Operating profit/(loss) Financial income and expenses Income tax (expense)/ benefit Profit/(loss) from continuing operations EUR million Comparable 10 007 (6 203) (1 928) (1 262) (75) 539 (93) (100) 348 Restructuring and associated charges (122) (50) (46) (217) 42 (175) Amortization of acquired intangible assets (28) (179) (207) 47 (160) Impairment of assets, net of impairment reversals (4) (14) (2) (20) 4 (16) Gain on sale of fixed assets 1 1 2 1 Release of acquisition-related fair value adjustments to deferred revenue and inventory (1) (1) (1) Costs associated with contract exit 1 1 1 Transaction and related costs, including integration costs (1) (1) (1) Change in financial liability to acquire NSB non-controlling interest 0 32 32 Legal entity restructuring 0 (45) (45) Items affecting comparability (1) (125) (92) (227) 0 (445) 32 49 (364) Reported 10 005 (6 328) (2 019) (1 489) (76) 94 (61) (51) (16)

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29 July 2021 44 Financial tables, unaudited Net cash and current financial investments EUR million 30 June 2021 31 March 2021 31 December 2020 30 September 2020 30 June 2020 Current financial investments 1 499 1 527 1 121 796 399 Cash and cash equivalents 7 252 7 315 6 940 6 836 7 088 Total cash and current financial investments 8 751 8 842 8 061 7 632 7 487 Long-term interest-bearing liabilities1 4 504 5 039 5 015 5 099 5 181 Short-term interest-bearing liabilities1 559 114 561 664 756 Total interest-bearing liabilities 5 063 5 153 5 576 5 763 5 937 Net cash and current financial investments 3 688 3 689 2 485 1 869 1 550 1Lease liabilities are not included in interest-bearing liabilities. Free cash flow EUR million Q2'21 Q2'20 Q1–Q2'21 Q1–Q2'20 Net cash from operating activities 106 333 1 410 467 Purchase of property, plant and equipment and intangible assets (113) (89) (272) (243) Proceeds from sale of property, plant and equipment and intangible assets 16 1 48 2 Purchase of non-current financial investments (16) (14) (42) (24) Proceeds from sale of non-current financial investments 84 34 133 57 Free cash flow 77 265 1 277 259

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29 July 2021 45 Financial tables, unaudited Comparable return on invested capital (ROIC) Q2'21 EUR million Rolling four quarters Q2'21 Q1'21 Q4'20 Q3'20 Comparable operating profit 2 776 682 551 1 056 486 Comparable profit before tax 2 608 643 495 1 063 407 Comparable income tax expense (606) (104) (120) (279) (103) Comparable operating profit after tax 2 131 572 417 779 363 EUR million Average 30 June 2021 31 March 2021 31 December 2020 30 September 2020 30 June 2020 Total equity 14 238 14 337 13 771 12 545 15 220 15 319 Total interest-bearing liabilities 5 498 5 063 5 153 5 576 5 763 5 937 Total cash and current financial investments 8 155 8 751 8 842 8 061 7 632 7 487 Invested capital 11 581 10 649 10 082 10 060 13 351 13 769 Comparable ROIC 18.4% Q1'21 EUR million Rolling four quarters Q1'21 Q4'20 Q3'20 Q2'20 Comparable operating profit 2 517 551 1 056 486 423 Comparable profit before tax 2 368 495 1 063 407 403 Comparable income tax expense (589) (120) (279) (103) (87) Comparable operating profit after tax 1 891 417 779 363 332 EUR million Average 31 March 2021 31 December 2020 30 September 2020 30 June 2020 31 March 2020 Total equity 14 572 13 771 12 545 15 220 15 319 16 004 Total interest-bearing liabilities 5 485 5 153 5 576 5 763 5 937 4 995 Total cash and current financial investments 7 667 8 842 8 061 7 632 7 487 6 315 Invested capital 12 390 10 082 10 060 13 351 13 769 14 684 Comparable ROIC 15.3% Q2'20 EUR million Rolling four quarters Q2'20 Q1'20 Q4'19 Q3'19 Comparable operating profit 2 151 423 116 1 134 478 Comparable profit before tax 1 924 403 45 1 108 368 Comparable income tax expense (488) (87) (12) (288) (101) Comparable operating profit after tax 1 605 332 85 839 347 EUR million Average 30 June 2020 31 March 2020 December 31, 2019 30 September 2019 June 30, 2019 Total equity 15 107 15 319 16 004 15 401 14 425 14 386 Total interest-bearing liabilities 4 795 5 937 4 995 4 277 4 480 4 286 Total cash and current financial investments 5 884 7 487 6 315 6 007 4 824 4 788 Invested capital 14 018 13 769 14 684 13 671 14 081 13 884 Comparable ROIC 11.4%

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29 July 2021 46 Additional information This financial report was authorized for issue by management on 29 July 2021. Media and Investor Contacts: Communications, tel. +358 10 448 4900 email: press.services@nokia.com Investor Relations, tel. +358 4080 3 4080 email: investor.relations@nokia.com • Nokia plans to publish its third quarter and January-September 2021 results on 28 October 2021.

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant, Nokia Corporation, has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

Date: July 29, 2021        Nokia Corporation

 

 By:/s/ Esa Niinimäki
 Name:Esa Niinimäki
 Title:Deputy Chief Legal Officer, Corporate