Nokia Recasts Financials for Discontinued Submarine Networks

TL;DR

Nokia's financials are changing: Submarine Networks is now a 'discontinued operation'.

AI Summary

Nokia Corporation filed a Form 6-K on October 1, 2024, to provide recast comparative quarterly financial information. This recast reflects the presentation of its Submarine Networks business as a discontinued operation, as detailed in a stock exchange release dated September 30, 2024.

Why It Matters

This filing clarifies Nokia's financial reporting by separating the Submarine Networks business, potentially impacting how investors evaluate the performance of its core operations.

Risk Assessment

Risk Level: low — This is a routine financial reporting update, not a material event impacting the company's operations or outlook.

Key Players & Entities

• Nokia Corporation (company) — Filer of the report
• Submarine Networks (company) — Business segment being presented as discontinued operation

FAQ

Filing Documents

• tm2425277d1_6k.htm (6-K) — 110KB
• tm2425277d1_6kimg011.jpg (GRAPHIC) — 4KB
• 0001104659-24-104402.txt ( ) — 116KB

From the Filing

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 under the Securities Exchange Act of 1934 Report on Form 6-K dated September 30, 2024 (Commission File No. 1-13202) Nokia Corporation Karakaari 7 FI-02610 Espoo Finland (Translation of the registrant’s name into English 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-F : Form 40-F: Enclosures: · Stock Exchange Release: Nokia provides recast comparative quarterly financial information reflecting the presentation of Submarine Networks business as discontinued operation · Attachment: EN Web tables recast Submarine 1 STOCK EXCHANGE RELEASE 30 September 2024 Nokia Corporation Stock Exchange Release 30 September 2024 at 23:00 EEST Nokia provides recast comparative quarterly financial information reflecting the presentation of Submarine Networks business as discontinued operation Nokia today provides recast comparative financial information for Nokia Group and Network Infrastructure segment for Q1 2024 and Q1-Q4 2023 reflecting the presentation of Submarine Networks business as discontinued operation. Presentation of Submarine Networks business as discontinued operation On 27 June 2024, Nokia announced it had entered into a put option agreement to sell Alcatel Submarine Networks (ASN) to the French State, represented by the Agence des participations de l'Etat (APE), subject to informing and consulting with the relevant employee representatives at ASN and Nokia along with other customary closing conditions and regulatory approvals. The put option agreement contemplates the sale of ASN for an enterprise value of EUR 350 million, while the final proceeds will depend on the working capital and net debt balances of ASN at closing. Upon entering into the agreement Nokia classified the assets and liabilities of ASN as held for sale and recorded an impairment loss of EUR 514 million on the measurement of ASN's net assets to fair value less costs to sell. Beginning from the second quarter of 2024 the Submarine Networks business, which was previously reported as part of Network Infrastructure operating segment, is presented as discontinued operation. The sale is expected to close at the end of 2024 or beginning of 2025. To provide a basis for comparison, the following tables present summarized income statement information for Nokia Group and Network Infrastructure segment on an unaudited basis for all quarters and the full year of 2023, as well as for the first two quarters and first half of 2024, reflecting the presentation of Submarine Networks business as discontinued operation. 2 STOCK EXCHANGE RELEASE 30 September 2024 Nokia Group Reported EUR million Q1'24 Q2'24 Q1-Q2'24 Net sales 4 444 4 466 8 910 Gross profit 2 210 1 936 4 146 Operating profit 405 432 836 Profit from continuing operations 451 370 821 Loss from discontinued operations (13 ) (512 ) (525 ) Profit/(loss) for the period 438 (142 ) 296 Reported EUR million Q1'23 Q2'23 Q3'23 Q4'23 Q1-Q4'23 Net sales 5 575 5 438 4 709 5 416 21 138 Gross profit 2 161 2 148 1 892 2 345 8 546 Operating profit 421 469 237 534 1 661 Profit/(loss) from continuing operations 283 287 130 (51 ) 649 Profit from discontinued operations 7 2 3 18 30 Profit/(loss) for the period 289 289 133 (33 ) 679 Comparable EUR million Q1'24 Q2'24 Q1-Q2'24 Net sales 4 444 4 466 8 910 Gross profit 2 246 1 998 4 244 Operating profit 600 423 1 023 Profit from continuing operations 512 328 840 Profit for the period 512 328 840 Comparable EUR million Q1'23 Q2'23 Q3'23 Q4'23 Q1-Q4'23 Net sales 5 575 5 438 4 709 5 416 21 138 Gross profit 2 172 2 184 1 921 2 421 8 698 Operating profit 471 619 418 830 2 337 Profit from continuing operations 332 409 293 555 1 590 Profit for the period 332 409 293 555 1 590 3 STOCK EXCHANGE RELEASE 30 September 2024 Network Infrastructure EUR million Q1'24 Q2'24 Q1-Q2'24 Net sales 1 439 1 522 2 961 Gross profit 587 585 1 172 Gross margin % 40.8 % 38.4 % 39.6 % Research and development expenses (301 ) (300 ) (602 ) Selling, general and administrative expenses (204 ) (207 ) (410 ) Other operating income and expenses 3 19 22 Operating profit 85 97 183 Operating margin % 5.9 % 6.4 % 6.2 % Share of results of associated companies and joint ventures — — — Depreciation and amortization (43 ) (41 ) (84 ) EUR million Q1'23 Q2'23 Q3'23 Q4'23 Q1-Q4'23 Net sales 1 964 1 706 1 534 1 712 6 917 Gross profit 820 702 622 765 2 910 Gross margin % 41.8 % 41.1 % 40.5 % 44.7 % 42.1 %

View Full Filing

View this 6-K filing on SEC EDGAR