Company: NOKBF
Filing Date: 2025-01-30
Form Type: 6-K
Source: 0001104659-25-007448
Chunk: 2

Company: NOKIA CORP
Filing Date: 2025-01-30
Form: 6-K
Chunk 2
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 of 2024 on a net basis. This
was achieved while maintaining our commercial and pricing discipline to protect our gross margins.

Cloud and Network Services returned to 7% net sales growth in the quarter,
despite a headwind of 4 percentage points from a prior business disposal, and its operating margin improved over the full year. Both Core
Networks and Enterprise Campus Edge grew strongly. The fourth quarter saw the acquisition of Rapid’s technology assets. This will
bolster our R&D capacity in Network as Code and increase our developer access. Taken together with our autonomous networks application
suite, we are accelerating our efforts to help operators fully automate and monetize their networks.

Nokia Technologies had an extremely active quarter. We signed a deal
with Transsion, a previously unlicensed mobile devices vendor, along with multimedia deals with HP and Samsung, as well as many other
smaller deals. Our annual net sales run-rate increased to approximately between EUR 1.3 and 1.4 billion in Q4, progressing towards our
mid-term EUR 1.4 to 1.5 billion target.

We delivered a strong cash performance throughout 2024, ending with
full year free cash flow of EUR 2.0 billion. This means we continue to have a strong balance sheet supporting our business with net cash
of EUR 4.9 billion at the end of the year, even after returning EUR 1.4 billion to shareholders through dividend and share buybacks. The
Board is proposing an increase in the dividend to EUR 0.14 per share in respect of the financial year 2024. We also continue to execute
against our outstanding share buyback program to offset any dilution from the equity component of our pending Infinera acquisition. Going
forward, our target remains to maintain a net cash position of between 10-15% of annual net sales.

Q4 also saw further progress in efforts to expand our presence in the
data center market. We signed important deals with Microsoft and Nscale for our data center switching products, along with announcing
partnerships with both Kyndryl and Lenovo. We are now stepping up our investments to broaden our addressable market in data center IP
networking. We will invest up to an additional EUR 100 million in annual operating expenses with a view to driving incremental net sales
of EUR 1 billion by 2028. In the short-term this will moderate the pace of operating margin expansion in Network Infrastructure, but we
antic