1、Nokia in 2022Business overview 02Nokia in 2022 04Letter from our President and CEO 10Our strategy 14Our history 22Customer Experience 24Business groups 26 Network Infrastructure 26 Mobile Networks 29 Cloud and Network Services 32 Nokia Technologies 35Supply chain,sourcing and manufacturing 38Corpora

2、te governance 40Corporate governance statement 42Compensation 61Board review 76Business description 78Boards review 2022 79Selected financial data 80Operating and financial review 81Sustainability and corporate responsibility 92Shares and shareholders 116Articles of Association 120Risk factors 122Si

3、gnificant subsequent events 125Key ratios 126Alternative performance measures 127Financial statements 132Consolidated financial statements 134Notes to consolidated financial statements 139Parent Company financial statements 198Notes to the Parent Company financial statements 202Signing of the Annual

4、 Accounts and theReview of the Board of Directors 2022 215Auditors report 216Auditors ESEF assurance report 219Other information 220Forward-looking statements 222Introduction and use of certain terms 223Glossary 224Investor information 227Contact information 228NOKIA IN 2022Overview01NOKIA IN 2022No

5、kia in 2022 04Letter from our President and CEO 10Our strategy 14Our history 22Customer Experience 24Business groups 26 Network Infrastructure 26 Mobile Networks 29 Cloud and Network Services 32 Nokia Technologies 35Supply chain,sourcing and manufacturing 38Business overviewBusiness overview03NOKIA

6、IN 2022NOKIA IN 202202Nokia in 2022The Nokia platform guides everything we do across ourglobal organization.Its three elements shape our ambition,our strategy and our culture.Our purposeAt Nokia,we create technology that helps the world act together.While our lives may be getting longer,healthier an

7、d richer,the world is facing fundamental challenges:Productivity is stalling,pressure on the planet is increasing and access to opportunity remains stubbornly unequal.Digitalization is central to the solution.We see the potential of digital to transform business,industry and society.When the worlds

8、organizations,machines and devices are in sync with each other and the people they serve,a new capability unfolds to create a more productive,sustainable and accessible future.Our commitmentWe are delivering the next evolution in critical networking through technology leadership and trusted partners

9、hips.We are meeting the new demands placed on networks through the next evolution of networking where networks meet cloud with networks that sense,think and act.These networks go beyond connecting people and things,bits and bytes.Theyre adaptable,autonomous,and consumable.Theyre alive with intellige

10、nce and enable people,machines and devices to interact in real time,like never before.Critically,networks that sense,think and act are creating new opportunities for our customers and partners,both existing and new,to access and harness the full power of networking like never before.How?By sensing a

11、nd understanding human and machine parameters using next generation mobile and optical technologies By thinking of actions before a fault occurs in the network or in an enterprise using next generation analytics and AI By acting to connect humans and machines alike by enabling wide area or local are

12、a networks.EssentialsOur essentials highlight the culture we are creating for our people,customers and partners.As we seek to realize the full potential of digital in every industry,acting as a collaborative partner to our customers and pioneering the next evolution of networks,we are creating the c

13、ulture needed to drive the future growth of Nokia.Open in mindset,to opportunity,through/with transparency Fearless bringing authenticity,sharing ideas and opinions,embracing collaboration Empowered to make decisions,to act with clear accountability.The platform for our futureBusiness overview05NOKI

14、A IN 2022NOKIA IN 202204Nokia in 2022Helping the world act together Global reachOur technology solutions enable critical networks for communications service providers(CSPs)and enterprises around the world.Net sales in 2022EUR 24.9bnCountries of operation130Average number of employees in 202286 900Sh

15、areholder distributionsDividend proposed in respect of 2022(1)EUR 0.12per shareOngoing share buyback program announced in 2022 EUR 600m over 2 yearsPromoting freedom of expression and privacyIn 2022,we completed our second independent Global Network Initiative(GNI)assessment.GNI Participants commit

16、to implementing the organizations Principles onFreedom of Expression and Privacy,providing direction and guidance to the ICT industry and its stakeholders on advancing human rights.Refer to the“Sustainability and Corporate Responsibility”section for more information on our sustainability and corpora

17、te responsibility work.Strengthening our technology leadershipR&D investment since 2000 EUR 140bn+Patent families declared as essential to 5G 4 500+Nobel Prizes awarded for ground-breaking achievements in global innovation 9 Financial highlightsFor the year ended 31 December,Continuing operations202

18、2EURm2021EURm2020EURmNet sales 24 911 22 202 21 852Gross profit 10 222 8 834 8 193Gross margin41.0%39.8%37.5%Operating profit 2 318 2 158 885Operating margin 9.3%9.7%4.0%Profit/(loss)for the year 4 210 1 654(2 513)EUREUREUREarnings per share,diluted 0.74 0.29(0.45)Proposed dividend per share(1)0.12

19、0.08 0.00As of 31 December2022EURm2021EURm2020EURmNet cash and interest-bearing financial investments(2)4 767 4 6152 485(1)The Board of Directors proposes to the Annual General Meeting to be authorized to decide in its discretion on the distribution of an aggregate maximum of EUR 0.12 per share as d

20、ividend from the retained earnings and/or as assets from the reserve for invested unrestricted equity.(2)Non-IFRS measure.For the definition and reconciliation of non-IFRS measures to the most directly comparable IFRS measures,refer to”Alternative performance measures”section.At Nokia,we create tech

21、nology that helpsthe world act together.As a B2B technology innovation leader,we are pioneering the future where networks meet cloud to realize the full potential of digital in every industry.Through networks that sense,think and act,we work with our customers and partners to create the digital serv

22、ices and applications of the future.Our products,solutions and services can drive social,environmental,and economic progress.Digitalization and connectivity can have a critical role in solving some of the worlds greatest challenges including stalled productivity,climate change and unequal access to

23、opportunity.Our products and solutions bring digitalization to physical industries and cities,helping them decarbonize and increase efficiency,productivity and safety.(1)Regional net sales figures exclude net sales of Submarine Networks business.Regional split of employees and net sales(1)At the beg

24、inning of 2022,we joined the RE100 initiative to help further solidify our work towards 100%renewable electricity across our facilities by 2025.North America10 500 EUR 8 388mSubmarine NetworksEUR 1 150mMiddle East&Africa3 200 EUR 1 969mLatin America2 900 EUR 1 223mAsia Pacific4 400 EUR 2 648mIndia16

25、 800 EUR 1 290mGreater China11 400 EUR 1 581mEurope37 700 EUR 6 662mBusiness overview0607NOKIA IN 2022NOKIA IN 202201067120222021202010 3989 71710 671033502022202120203 0873 0893 351090442022202120206 7367 6749 0472022202120201 4021 5021 595015950.08.82022202120207.9%7.9%8.8%-2.25.4202220212020(2.2)

26、%5.4%5.3%0.012.22022202120206.8%10.2%12.2%20222021202080.1%78.9%75.7%0.080.1Our business groupsNokia has four business groups with each business group aiming to become a technology and market leader in their respective sector.Nokia in 2022Mobile Networks creates products and services covering all ne

27、twork generations.Its portfolio includes products for radio access networks(RAN)and microwave radio links for transport networks,solutions for network management as well as network planning,optimization,network deployment and technical support services.Mobile NetworksCloud and Network Services enabl

28、es CSPs and enterprises to deploy and monetize 5G,cloud-native software and as-a-Service delivery models.Cloud and Network ServicesNetwork Infrastructure provides fiber,fixed wireless access technologies,copper,IP routing,data center,subsea and terrestrial optical networks along with related service

29、s to customers including communications service providers,webscales(including hyperscalers),digital industries and governments.Network InfrastructureNokia Technologies is responsible for managing Nokias patent portfolio and monetizing Nokias intellectual property including patents,technologies and t

30、he Nokia brand.Nokia TechnologiesSegment net sales(EURm)Segment net sales(EURm)+10%+90 bps+8%-10 bps+18%+200 bps+6%-320 bps Segment operating margin(%)Segment operating margin(%)Business overview0809NOKIA IN 2022NOKIA IN 2022Letter from our President and CEOLetter from our President and CEOA year of

31、 accelerationWe said at the start of 2022 that it would be a year of acceleration,and I am pleased that we delivered what we promised.The Nokia team did a great job navigating geopolitical,economic and supply challenges,successfully executed our strategy and delivered a strong full-year performance.

32、As a result,we achieved another year of solid growth while maintaining good profitability.The reset we completed in 2021 meant we began the year on a much stronger footing for the second phase of our three-part plan to reset,accelerate and scale our business with the aim of ensuring sustainable,prof

33、itable growth.The focus on strengthening our technology leadership and increasing our competitiveness helped us gain market share in many areas including new customer wins in rapidly growing markets like India.One of our strategic priorities for 2022,and beyond,was to broaden our customer base and g

34、row in Enterprise.I was delighted that we delivered on this aspiration with strong Enterprise net sales growth.Importantly we also achieved significant webscale customer wins and momentum continues to build in private wireless,where we had more than 560customers at the end of 2022.“All four of our e

35、mpowered and accountable business groups showed signs of acceleration this year,helping Nokia take another step towards our long-term target ofgrowing faster than the market with a comparable operating margin of at least 14%.(1)”Pekka Lundmark,President and CEOOur technology leadership was evident i

36、n many other areas,including IP Networks,where we started to deploy 800 Gigabit Ethernet(800GE)routing to give operators more capacity and greater energy efficiency.We also launched Nokia Lightspan MF-14,the worlds most advanced fiber platform,and carried out the first 100G passive optical network(P

37、ON)broadband demonstration in the US.Together with our partners,we set new records in 5G carrier aggregation and launched the worlds first commercial 5G standalone network with network slicing for Fixed Wireless Access services.We also launched the first complete 5G core solution in the Software-as-

38、a-Service(SaaS)delivery model.Nokia continued to invest in research and development and to ensure our technology leadership for the future.Construction work got underway on a new campus in Oulu,Finland,encompassing new facilities for R&D,manufacturing and office space,and we announced an ambitious r

39、edevelopment of our Ottawa campus,in Canada,to create a center of excellence for 5G,cybersecurity,AIand machine learning research.This year was not without its challenges.Nokia strongly condemned the Russian invasion of Ukraine,and I am proud of our Ukrainian employees,who are bravely helping mainta

40、in customer networks and provide critical connectivity.It became clear in the early days of the invasion that our continued presence in Russia would no longer be possible,so we took the decision to exit the Russian market.Progress across our business groupsAll four of our empowered and accountable b

41、usiness groups showed signs of acceleration this year,helping Nokia take another step towards our long-term target of growing faster than the market with a comparable operating margin of at least 14%(1).Network Infrastructure had another year of strong growth,with all four of its business divisions

42、contributing,and significant operating margin expansion.Clear technology leadership across the portfolio and continued strong demand for fiber were the biggest drivers.We have now reached more than 100 customers for PSE-V,our advanced coherent optical solution,and more than 30 customers for our FP5

43、chipset.Mobile Networks delivered on its ambition to return to growth in 2022 and improved profitability over the full year,driven by increased portfolio competitiveness and strong demand.We continued to win new 5G business and our ReefShark system-on-chip portfolio accounted for 97%of shipments by

44、the end of the year,hitting the target of around 100%.(1)Non-IFRS measure.For the definition and reconciliation of non-IFRS measures to the most directly comparable IFRS measures,refer to”Alternative performance measures”section.Business overview1011NOKIA IN 2022NOKIA IN 2022Letter from our Presiden

45、t and CEO continuedCloud and Network Services grew its top line as it continued to make progress refocusing investments and rebalancing the portfolio.The launch of Nokia Cloud Native Communication Suite,giving customers greater energy efficiency,was a highlight.CNS also created a new business unit,f

46、ocused on improving the returns on our customers network investment,launched several SaaS services,and expanded our campus private wireless leadership while targeting broader Enterprise Campus Edge opportunities.Nokia Technologies continued to make good progress in growth areas with new licensing ag

47、reements in the automotive,consumer electronics and Internet of Things(IoT)sectors.We also continued to strengthen our portfolio,filing patents on over 1 700 new inventions last year and reaching over 4 500 patent families declared as essential to5G.Purpose drives our successIn 2021 we introduced ou

48、r new purpose At Nokia,we create technology that helps the world act together.To ensure we achieve our company purpose,in 2022 we announced a Technology Strategy and a new Environmental,Social and Governance(ESG)Strategy to drive closer alignment of product development across our business with the a

49、im of making ESG a competitive advantage for Nokia.Technology StrategyThis strategy has seven pillars and has evolved out of our Technology Vision 2030,which identified the need for advanced networks and an ecosystem of partners to realize the potential of digitalization and the three main metaverse

50、s(Consumer,Enterprise and Industrial)we believe will emerge by the end of the decade.The seven technology pillars for Nokias differentiation are:innovation,sustainability,semiconductors,security,artificial intelligence,software and consumability.Environmental,Social and Governance(ESG)StrategyThis s

51、trategy has five focus areas to ensure that sustainability is a fundamental part of how Nokia develops technology and makes business decisions.The five ESG focus areas are:the environment,industrial digitalization,security and privacy,bridging the digital divide and responsible business.People at th

52、e heart of our organizationIn collaboration with our employees,we also created a new Nokia People Strategy to guide our daily work with the intention of putting our people at the heart of everything we do.Our goal is to create an environment in which all our people can thrive so that we can deliver

53、on our purpose.We believe this approach will also help us attract,retain and develop the best talent.Renewing our brand and strategyupdateWe recognized that we needed to refresh Nokias brand to reflect who we are today.In 2022 we began work on renewing our brand,and updating our strategy,to help ref

54、rame how customers,partners,stakeholders and current and potential employees perceive Nokia with the aim of asserting our leadership in networking technology when we launched our refreshed brand in early 2023.Looking aheadThere were a number of challenges we had to overcome throughout the year,but I

55、m delighted we still managed to accelerate our performance and demonstrate the resilience of our business.Thanks to the team,we ended the year in a much stronger position and firmly on track to achieve our long-term business objectives.I firmly believe consistent execution and progressing towards ou

56、r long-term targets will also enable us to deliver what is our ultimate objective creating value for our shareholders.Pekka LundmarkPresident and CEOMomentum continues to build in private wireless,where at the end of 2022 we had560+customersFor PSE-V,our advanced coherent optical solution,we have no

57、w reached100+customersand for our FP5 chipset30+customers“In collaboration with our employees,wealso created a new Nokia People Strategy to guide our daily work with the intention of putting our people at the heart of everything we do.Our goal is to create an environment in which all our people can

58、thrive so that we can deliver on our purpose.”Business overview1213NOKIA IN 2022NOKIA IN 2022Our strategyWe serve three customer segments:communications service providers,enterprises and licensees.Our customers Networks play an increasingly important role in the economy and in society.As a result,we

59、 serve a growing number of customers who provide critical services to end-users.We distinguish three customer segments that we serve with our hardware,software and services portfolio:Communications services providers,and enterprises,therein enterprise verticals and webscalers.In addition,we license

60、our intellectual property to selected industries that benefit from our innovations,primarily in the mobile devices,automotive,consumer electronics and IoT industries.Our analysis of the evolution of these segments is set out below.1 Communications service providers(CSPs)The CSPs estimated total addr

61、essable market(TAM)grew by 5%to EUR 110 billion from 2021 to 2022.A communications service provider offers telecommunications services such as voice and/or data services through fixed and/or mobile connectivity to consumers,enterprises,governments and other communications service providers.Nokia mai

62、ntains a consolidated view of the Nokia total addressable market based on multiple external analyst reports,customer and key competitor reported and announced insights as well as Nokia internal insights.We estimate the CSPs total estimated addressable market for Nokia grew by 5%to EUR 110 billion fr

63、om 2021 to 2022.We expect it to only grow moderately,at a 1%compound annual growth rate(CAGR)between 2022-27.We expect the CSP radio access network(RAN)market outside China to continue to grow through 2023,and the declining investments in LTE and 2G/3G to start to offset 5G growth afterwards,resulti

64、ng in flat outlook after 2023 through to 2027.We expect that fixed wireless access,fiber,IP routing and optical networks grow faster than the overall CSP market,driven by the continuous demand for higher speed access technologies at homes and workplaces.The 5G cycle will also yield growth in softwar

65、e,namely in 5G Core and in all software segments supporting 5G operability and monetization.CSPs have kept their capital expenditure intensity flat,but increased their earnings through automation,digitalization,shifts in channel mix,outsourcing and asset sales.We expect them to remain focused on the

66、 monetization of their connectivity strengths,and on cost optimization.They are also considering divesting from passive infrastructure and transitioning towards network sharing models.In areas in which the network is built for coverage,this might reduce demand for network vendor equipment.We have al

67、so seen the first examples of CSPs relying on webscalers to lead the transition to cloud-based operational and business models.When combined with open RAN standards that aim at splitting a base transceiver station into subcomponents with open interfaces,this may allow for new entrants into the marke

68、t and increase competition.Conversely,it should also serve to accelerate innovation and create opportunities for market share gains for those investing in the technology.Geopolitics and environmental criteria increasingly influence investment and vendor decisions.Security and sovereignty have become

69、 important factors across the vendor landscape.Government-funded broadband initiatives also provide additional funding for investments,for example in rural areas.Sustainability considerations such as green energy use,energy consumption reduction plans and circular economy approaches also shift the c

70、riteria for vendor selection.2 EnterprisesEnterprise estimated TAM grew by 12%to EUR 16 billion from 2021 to 2022.Enterprise TAM includes enterprise verticals and webscaler markets.The estimated enterprise TAM grew by 12%to EUR 16 billion from 2021 to 2022.We forecast this market to grow strongly,at

71、 8%CAGR until 2027,withthe private wireless market reaching 27%CAGR.Enterprise verticalsAn enterprise vertical represents a grouping of companies by an industry that offers products and services that meet specific needs.We primarily focus on transportation and logistics,energy,manufacturing,and publ

72、ic sector verticals.This reflects our assessment that these are seeing the most significant digitalization over the coming years,as they automate many aspects of their operations.We project that growth will mainly be driven by private wireless and wireline networks in manufacturing,as well as in the

73、 public sector and in energy.We estimate that IP routing and optical networks will also continue to grow moderately in these segments.WebscalersWebscaler refers to companies that provide cloud-based solutions and services.Alphabet(Google Cloud Platform),Amazon(Amazon Web Services)and Microsoft(Azure

74、)are the largest cloud players also referred to as hyperscalers operating on a global scale.Our TAM for webscalers consists mainly of optical networks and IP routing.Within optical networks,we expect that data center interconnect(DCI)will be a strong growth driver,while the increasing webscaler data

75、 traffic requires adoption of higher bit rate technologies also in IP routing.3 LicenseesLicensees refers to companies who have agreed licenses to use Nokias intellectual property.This includes the licensing of Nokias patent portfolio,the licensing of technologies for integration into consumer devic

76、es and licensing of the Nokia brand.The majority of Nokia Technologies revenues comes from patent licensing where we have agreements with most major smartphone vendors as well as licensing programs for consumer electronics,video services,automotive and the wider IoT domain.In total,we have more than

77、 200 licensees across all our programs,including companies like Samsung,Lenovo,and Volkswagen.The largest,global webscalers are also assuming an increasingly important role within the telecommunication domain.They target edge computing as the next growth engine for industrial automation workloads an

78、d low-latency applications.They also partner with CSPs to co-locate edge stacks on-premises and at metro sites.Additionally,they aim to run telecommunication network workloads on their cloud infrastructure.As such,webscalers are customers and potential partners,as well as potential competitors in so

79、me areas.Enterprise verticalsDigitalization and automationof operations in industrial segmentsTransition to software-centric operations and adoption of industrial OT edge andon-premise cloudsEnergy and manufacturingas early adopters of private wireless and automation solutionsFederal,state governmen

80、tand cities network modernization accelerationWebscalersEdge computingas a growth engine industrial automation workloads across on-premise,edge,public cloudPartnering with CSPsto co-locate edge stacks and building an ecosystem for low-latency appsTargeting telco and networkworkloads to run on their

81、cloud infrastructureCollaborating with CSPsin the transformation of network operationsCSPsEnterprise LicenseesAcceleration of ESG and Cybersecurity Maturity123Focus on connectivity strengths and using cost optimization viaautomation and asset carveouts to fund both fiber and 5G investmentsFavoring c

82、loud strengthsin vendor and partner ecosystemNetwork monetizationtargeting enterprise and edge use casesPatent portfolio with long life-timethe vast majority of Nokias patents still in force in ten years timeNew inventions every yearin 2022,Nokia filed patent applications on more than 1 700 new inve

83、ntions,enabling 5G networks,connected 5G devices and moreAnnual number of patent filings expected to growdue to continued investments in R&D and standardizationEntire industries powered by our fundamental cellular and multimedia inventionsproviding us with the opportunity to expand our licensing cov

84、erage;we are making good progress in our growth areas of consumer electronics,automotive,and IoTBusiness overview1415NOKIA IN 2022NOKIA IN 2022Our strategy continuedNetworks are the key enabler for the digitalization of industries and the realization of the broader potential ofthemetaverse.As a resu

85、lt,we see opportunity to grow our business,expandinto adjacencies and transform our business model.Our strategyOur strategyTo reinforce our position as a leader and enabler of digitalization,we are confidently asserting the value we bring:Networking expertise:We know that accelerating the digital tr

86、ansformation of every industry will be critical to unlocking massive gains in sustainability,productivity,and accessibility our networking expertise is increasingly valuable to customers and partners as they seek to maximize their growth.Technology leadership:We are specialists in the technology we

87、deliver with a laser-focus on delivering a best of breed technology portfolio.Pioneering innovation:Innovation runs through our business across our evolving portfolio,in the disruptive research and game-changing programs at Nokia Bell Labs,in our work to build the device and application ecosystems n

88、eeded for digitalization,and through our innovation programs where we bring emerging technology to life alongside our partners.Collaborative advantage:Collaboration is in our DNA,and we are valued for the trusted relationships we build with our customers.Today,we are going further:we know that reali

89、zing the potential of digital cannot be achieved alone,so we are focused on bringing the right partners and technologies together to create the digital services and applications of the future.In 2021,Nokia set out its strategy to deliver sustainable,profitable growth by becoming a B2B technology inn

90、ovation leader,accompanied by a new purpose and operating model.We set out actions to reset,accelerate,and then scale our business to lead in a world where widespread digitalization is gathering speed.And as enterprises,webscalers and governments digitalize,they increasingly need the essential netwo

91、rking technology Nokia provides to succeed.Networks are critical to unlocking the enormous opportunities across industrial,enterprise and consumer spheres,as we outlined in our Technology Vision 2030.Our strategy consists of six pillars key objectives that will define our success and four enablers t

92、o help us get there.Grow CSP business fasterthan marketSecure business longevity in Nokia TechnologiesWe are investing to ensure the sustained competitiveness of our patent portfolio.We will continue to pursue opportunities from sectors outside mobile devices,such as automotive,consumer electronics,

93、IoT and video services.Develop future-fit-talentWe have launched and are executing a new people strategy focused on growth,skills,and development.We build the right future skills for our employees in the technical domains identified in our technology vision and strategy,and the commercial skills to

94、support our expansion into new domains.Invest in long-term researchSustained technology leadership is a key driver of our success:it requires us to anticipate,shape,and invest in the next technology waves and breakthroughs.We continue to invest in long-term research to ensure a leadership position i

95、n line with our Technology Vision 2030.We are also deeply engaged in leading and influencing standards and developing standard essential patents.Digitalize our own operationsWe are increasing the digitalization of our own operations to lead by example with a set of ambitious,company-wide strategic i

96、nitiatives to increase the companys performance and competitiveness,focused on efficiency,productivity and agility in internal operations,customer experience and R&D.Refresh our brandWith Nokia accelerating into the next phase of our growth strategy,we have refreshed our brand to reflect the focus o

97、f Nokias business as a B2B technology innovation leader.Our new visual identity is emblematic of an energized,dynamic and modern Nokia.Expand the share of enterprise in our businessBuild new business modelsTo broaden our customer base and change our margin profile,we see potential in new platform bu

98、siness models within the broader ecosystem.We engage with service providers,webscalers,industrial giants and emerging players like app developers and start-ups,to drive the creation of new products,services,and solutions,and to explore new business models including CloudRAN,Network as Code and as-a-

99、Service.Actively manage our portfolioDevelop ESG into a competitive advantageESG is increasingly important for customers,investors,regulators,partners,and Nokia employees.There is space in our industry to become the trusted provider and Nokia aims to claim this position.Our ESG strategy lays out how

100、 we will do this and our specific areas of focus.The six pillars are:The six pillars are underpinned by four enablers:CSPs will continue to be our main customer segment.We will leverage our strong technological position,investment in technology leadership and emerging opportunities to grow our share

101、 in key markets,with geopolitical considerations supporting this ambition.Enterprise verticals and webscalers are deploying campus networks,wide area private wireless networks,enterprise physical networks,and data centers at an accelerated rate to digitalize their operations.Being a technology leade

102、r in all these domains,we pursue these opportunities to grow our enterprise business.Maintaining our portfolio segments at number one or number two position,through several routes including active portfolio management,is critical for a profitable and sustainable business.There may be cases where a l

103、eadership position is not possible and for these cases,we will consider alternatives.1144225336As we move from the 5G era towards 5G-Advanced and 6G,the underlying networks will need to evolve.The networks of the next decade will need to meet the demands of fully immersive augmented and virtual real

104、ity,digital twins,and biosensors.These technologies will in turn unleash the full promise of the consumer,enterprise and industrial metaverses,which until now have only shown a glimpse of their potential.They will pave the way for true extended reality(XR)experiences,which will eventually lead to th

105、e merging of the physical and digital worlds and the enhancement of humans.Early metaverse applications are already visible in industries which use digital twins,where significant uplifts in productivity,sustainability and worker safety have been achieved.We have helped to pioneer these advances by

106、collaborating with customers and partners.The successful and rapid deployment of these technologies will require a fundamental shift in connectivity.We are embracing this opportunity to pioneer the next evolution of networking,where networks meet cloud.Business overview1617NOKIA IN 2022NOKIA IN 2022

107、Our strategy continuedAs one of the industrys leading investors in communication technology research and development(R&D),we drive innovation across a comprehensive portfolio of network equipment,software,services andlicensing opportunities.Our path to continued technology leadershipNokias world-lea

108、ding research and developmentWe have a global network of R&D centers,each with specialties and ecosystems built around both competence and technologies.Most of our R&D is conducted within the business group structures,and is further elaborated in the Business Group specific sections of this report.L

109、aying the path for Nokias future technology innovation and identifying the most promising areas for new value creationWhile our business groups focus on near-to mid-term innovation,Nokias dedicated Strategy and Technology(S&T)organization isfocused on longer-term technology cycles.S&T is responsible

110、 for developing a coherent corporate strategy and technology and architecture vision across the company,as well as implementing it in partnership with Nokias business groups.S&T drives company-wide internal technology alignment,and by transferring technologies to the business groups,it evolves the c

111、ompanys technology portfolio to enable Nokias continued technology leadership.Strategy&TechnologyTransfer technologies to Nokia BGsTechnology vision&strategyCorporate strategy developmentAppllied research Bell LabsFundamental research Bell LabsIndustry standardizationIncubating&venturingEcosystem&st

112、rategic partnershipsSecurityDigitalizationNokia Bell Labs continues its long-standing tradition of disruptive innovation within the fundamental technologies that underpin communications networks and systems.A key part of its mandate is to also explore concepts that generate growth opportunities in a

113、djacent and emerging markets.Nokia has pioneered many of the foundational technologies of the 5G era.Now,our research is actively focusing on the future beyond 5G,so that we are firmly positioned to continue our leading role.Nokia is investing to lead in the 5G-Advanced networks that are anticipated

114、 to begin appearing in 2025,while also already actively preparing for leadership in the 6G era.Hexa-X II,the second phase of the European Commissions flagship 6G initiative for research into the next generation of wireless networks,was announced in October 2022 with Nokia as project lead,working clo

115、sely with a strong consortium of European partners.Nokia was also named the overall leader for 6G-ANNA,a German state-funded 6G lighthouse project.Nokia is engaged in many other projects and initiatives with industry peers,customers,academia,and research institutions globally,spanning Europe,the U.S

116、.,and APAC,to form a common view and direction for 6G.Nokia is a leader in passive optical networks(PON).Following our launch in 2020 of the first commercial 25G PON solution,Nokia Bell Labs invented the next generation solution,delivering a record-breaking 100 Gb/s on a single PON wavelength in 202

117、2.World-class research on optical systems and devices innovations enabled record-breaking transmission speeds of up to 2 Tb/s on a single wavelength and Pb/s per fiber.Novel network architecture concepts that leverage artificial intelligence will allow for the frictionless deployment of cloud-native

118、 network services,and new business models across multiple stakeholders.We are actively engaged in leading and influencing standards and developing new standard-essential patents(SEPs),thus shaping future technologies and systems while contributing to our IPR portfolio.We pursue future growth platfor

119、ms through NGP Capital innovation outreach,and the in-house incubation and commercialization of venture projects.We are creating a strategic partner platform,as well as productive,global and multi-dimensional ecosystems for new business opportunities.We are also focused on enabling Nokia as a best-i

120、n-class digital enterprise and identifying security requirements,trends and evolving risks,to position Nokia as a trusted security partner for the 5G era and beyond.EUR 140bn+invested in cutting-edge R&Dsince 2000EUR 4.5bn+invested in R&D across Nokiaduring 2022Innovation leadershipSpearheaded by No

121、kia Bell Labs4 500+patent families declared as essential to 5G standards6Gleadership in Hexa-X project and beyondStandards leadershipEcosystem leadership through standardization.Nokia holds key positions across all major standardization and industry groups20 000patent families with the vastmajority

122、still in force intenyears time1 700+patents filed for new inventions in 2022Patent leadershipConstant renewal of industry-leading portfolioBusiness overview1819NOKIA IN 2022NOKIA IN 2022Our strategy continuedWe see the network as critical to realizing the enormous range of potential that themetavers

123、e opens in the industrial,enterprise and consumer spheres as weapproach 2030.Our Technology Vision 2030Our Technology Vision provides directional input to Nokias technology strategy and roadmap,serving as a valuable platform for strategic engagement with our customers and key stakeholders.We periodi

124、cally refresh our Technology Vision to ensure our outlook remains cutting-edge,with the latest iteration released in September 2022.By 2030,the world will have undergone a significant transformation.The global rate of technology adoption will be driven by trends such as environmental sustainability

125、and cybersecurity.Advances in semiconductors,software,artificial intelligence(AI)and machine learning(ML)will continue to accelerate.But it will be the development of technologies that power the metaverse,cloud and Web3 that will have the greatest transformative impact.We expect human augmentation t

126、echnologies,such as extended reality(XR),and digital-physical fusion technologies,such as digital twins,to be the key drivers of network transformation as we enter an era of unprecedented immersive technology and industrial digitalization.We see metaverse opportunities clearly differentiated between

127、 consumer,enterprise,and industrial.The enterprise metaverse has a predominantly IT-focus,while the industrial has its primary focus on operational,mission-critical technologies.We believe that all three segments promise significant revenue potential by 2030,and we are already seeing very solid trac

128、tion in the industrial metaverse in particular with the adoption of digital twins in numerous areas across design,production and logistics.We see the network as the key enabler of metaverse opportunities and the expectations on its capabilities will be stretched beyond what is possible today.The key

129、 attributes of the new network include:Radically enhanced performance,extreme capacity and optimization for a wide range of user-specific needs Heightened sensing and context-awareness;dynamically and automatically adapting connectivity 100%cloud-native design,supporting adistributed architecture an

130、d openness through developer-friendly application programming interfaces(APIs)Efficiency,resilience,and agility,with zero-touch management and AI/ML-driven,intent-based autonomy Security and energy efficiency features,designed-in as core requirements.The network will need to transform to meet these

131、challenges alongside new paradigms,such as networks of networks,specialized sub-networks,and enriched Network-as-a-Service capabilities.We strongly believe that the opportunities of the metaverse will be realized by a multi-party value ecosystem,centered around the new network capabilities and as-a-

132、service propositions.No single company will be able to provide all the solutions,and we expect arich ecosystem to develop around collaboration,co-innovation and partnering.Nokia is strongly positioned to lead these collaborative advantages.“We strongly believe that the opportunities of the metaverse

133、 will be realized by a multi-party value ecosystem,centered around the new network capabilities and as-a-service propositions.No single company will be able to provide all the solutions,andwe expect a rich ecosystem to develop around collaboration,co-innovation and partnering.”Human AugmentationDigi

134、tal-Physical FusionMulti-party Value ecosystemNetwork of NetworksSpecialized Sub-networksNetwork-as-a-ServiceBusiness overview2021NOKIA IN 2022NOKIA IN 20222019 Opened the worlds first live end-to-end 5G lab,the Future X Lab in Murray Hill,New Jersey,US2017-2021Additional acquisitions enhancing our

135、technology leadership such as:Deepfield,the US-based leader in real-time analytics for IP network performance management and security;Comptel,a Finland-based telecommunications software company;Unium,a Seattle-based software company that specializes in solving complex wireless networking problems fo

136、r use in mission-critical and residential Wi-Fi applications;and Elenion,a US-based company focusing on silicon photonics technology2022Brought 6G vision to life with DOCOMO and NTTOur history1865Founded as a single paper mill operation 1926 Brought sound to motion pictures*1960sNokia becomes a cong

137、lomerate comprising rubber,cable,forestry,electronics and power-generation businesses1947Developed the transistor,a tiny device that revolutionized the entire electronics industry*1954 Created the solar cell,enabling the conversion of the suns energy into electricity*1958 Developed the laser,creatin

138、g the foundation for fiber optics*1962 Launched the first communications satellite,Telstar 1,into orbit enabling the first ever broadcast of live television between the US and Europe*1969 Developed Unix,the software system that made the large-scale networking of diverse computing systems and the int

139、ernet practical*1982 Introduced both the first fully digital local telephone exchange in Europe and the worlds first NMT carphone 1991 Enabled the first GSM call using a Nokia phone over the Nokia-built network of Finnish communications service provider Radiolinja 1998 Became the worlds largest manu

140、facturer of mobile phones 2001 Invented MIMO(Multiple-Input and Multiple-Output),a key element of a large number of modern wireless systems,that allows for greater throughput without increasing bandwidth requirements*2006 Developed Softrouter,a routing architecture permitting the development of a pr

141、ogrammable,open network infrastructure to allow easier deployment of new services that make use of exposed network capabilities*2014 Developed XG-FAST technology,enabling service providers to generate fiber-like speeds of more than 10Gbps over short distances using existing copper infrastructure*201

142、7Developed Probabilistic Constellation Shaping,an innovative technology to get the most out of each fiber,irrespective of its length and capabilities2007Entered a joint venture with Siemens,combining mobile and fixed-line phone network equipment businesses and creating Nokia Siemens Networks(NSN)201

143、1Entered a strategic partnership with Microsoft to address increasing competition from iOS and Android operating systemsAcquired the wireless network equipment division of Motorola 2013Purchased Siemens stake in NSN 2014Sold the Devices and Services business to Microsoft2016Acquired Alcatel-Lucent,i

144、ncluding Bell Labs,creating an innovation leader in next-generation technology and services 2017Created Nokia Shanghai Bell,a joint venture between Nokia and China Huaxin,integrating Alcatel-Lucent Shanghai Bell Co.Ltd and Nokia China 2020 Selected by NASA to build and deploy the first end-to-end LT

145、E solution on the lunar surface Enabled commercial deployment of the worlds first 5G liquid cooling solutionSet the 5G speed world record2021 Developed the Resh programming language to take control of and manage a fleet of robots2022Showcased the first 100Gb/s fiber broadband technology in the USLau

146、nched the Advanced Security Testing and Research(ASTaR)lab in Dallas the first end-to-end 5G testing lab in the US focused solely on cybersecurityIntroduced the 6 pillars of Responsible AI*Bell Telephone Laboratories(1925-1984).Following its acquisition by Nokia in 2016,it was renamed Nokia Bell Lab

147、s.Our historyNokia has been adapting to the needs of an ever-changing world for over 155 years.186518651960196020002000201220122017201720202020MilestonesInnovationsBusiness overview2223NOKIA IN 2022NOKIA IN 2022Customer ExperienceThe CX organization unites sales and customer marketing under one umbr

148、ella.Thisallows us to better leverage common platforms,processes and resources to drive brand awareness,create demand,and engage customers across all markets.CX drives growth across all network business group portfolios by engaging CSPs,enterprises (in target verticals),hyperscalers and governments,

149、positioning Nokia as a technology leader,innovation partner,and solutions provider worldwide.Our customers benefit from the unique insights resulting from our extensive analysis of the global market,and our experience working with diverse customer types around the world.This enables our customers to

150、 make the best strategic technology decisions to help grow their businesses.While enterprise sales,marketing and delivery are part of the CX umbrella,the products and solutions developed for this diverse customer segment come from the business groups.Working across industries including manufacturing

151、,energy,transportation and the public sector,as well as by harnessing the power of our growing partner community,the enterprise team helps customers address their unique business challenges through Industry 4.0 digital transformation.Our solutions help transform operations and modernize communicatio

152、n networks with leading next-generation technologies from across our businesses,including IP,optical,fixed networks,microwave,and private wireless networking.The enterprise team has worked with more than 2 600 organizations,connecting people and technologies,improving safety in the workplace(workers

153、 and operations)and in cities around the world.At the same time,we have increased automation and agility to boost productivity and efficiency,and helped our customers achieve greater resilience and sustainability through digitalization.Together,CX and the business groups align on our go-to-market am

154、bitions,resourcing,and customer requirements.This enables the business groups to remain accountable for their own financial performance.Collective competence is delivered consistently across all business groups,coupled with deep expertise across each unique industry we serve.This allows us to solve

155、customer challenges,inspires growth,and enables our customers to achieve their immediate and long-term goals.2022 in brief Chosen by Reliance Jio India to build one ofthe largest 5G networks in the world Collaborated with T-Mobile to build flexible,scalable 5G networks,enabling applications that pro

156、vide enterprise and government customers with superfast speeds and lowerlatency Selected by SK C&D to deploy managed SD-WAN to accelerate group wide digital transformation Chosen by Etisalat UAE to launch 5G private wireless networks to support digital transformation Chosen by American Tower to intr

157、oduce SDN virtualization to redefine fiber broadband deployment in Argentina Extended our relationship with UScellular to boost its 5G network speed,capacity andcoverage Selected by Moratelindo to deploy a high-performance optical transport network to boostcapacity across Indonesia.Nokias Customer E

158、xperience(CX)organization is designed to ensure we engage customers with a unified and consistent voice.The goal of the organization is to advocate for customers within Nokia,understanding the needs ofeach,to deliver the best possible experience and business outcomes.Customer ExperienceThe enterpris

159、e team has worked with more than 2600 organizations,connecting people and technologies,improving safety in the workplace and in cities around the world.Case studyThe Public Transport Authority of Western Australia will useNokias private wireless technologies to modernize rail communications in Perth

160、 Private wireless networking is enabling Perth to enhance its public transportation program as part of the citys long-term blueprint for the future.The project includes designing,building,and maintaining The Public Transport Authority of Western Australias next-generation communications system,cover

161、ing 250 km of railway track and tunnels.Powered by Nokias private wireless network solution,the new railway communication system will help enhance the accuracy of the system,leading to improved experience and safety.Private wireless is a key technology in enabling and accelerating digital transforma

162、tion across industries,including transportation.Business overview2425NOKIA IN 2022NOKIA IN 2022Network InfrastructureNetwork Infrastructure builds business-critical and mission-critical networks for a wide range of CSP,enterprise,and webscale customers;delivering fixed access,IP routing,data center

163、networks,and optical transport for both terrestrial and subsea applications.Market overviewDemand for connectivity continues to be strong.Meanwhile,our customerswho include CSPs,enterprises,governments,webscalers and hyperscalersare turning their attention to future drivers of demand.These include e

164、nterprise digitalization,the shift to the cloud,5G and even 6G introduction,and digital/physical fusion and the metaverse.Customers are considering the demands these place on networks in terms of capacity,reliability,deterministic performance and security.At the same time,the urgency of climate chan

165、ge and heightened global economic uncertainty has renewed attention on the importance of sustainability and efficiency.We continue to focus our innovation power on the products,platforms and solutions that address these issues.This includes providing established and new operators with the means to s

166、erve residential users,businesses,and Wi-Fi and 5G cells with a single access network,radically simplifying the massive scale in optical networks,or focusing on the need for highly scalable,deterministic,and power-efficient capacity in IP networks.The estimated Network Infrastructure addressable mar

167、ket,excluding Submarine Networks(1),for 2022 was EUR 47 billion.We currently forecast an addressable market,excluding Submarine Networks(1)for 2023 of EUR 48 billion,reflecting year-over-growth of approximately 4%,excluding the impact of changes in foreign currency exchange rates.Business overview a

168、nd organizationOur business divisions are:Fixed Networks,IPNetworks,Optical Networks and Submarine Networks.Fixed Networks offers fiber and copper-based access infrastructure,Wi-Fi in-home solutions,the cloud and virtualization.In 2022,we continued to advance our leading position in passive optical

169、networks(PON)2).We were first-to-market with a 25G PON solution and have shown up to 100G PON proofs of concept with customers in Europe and the USA.We continue to innovate around solutions that will allow our customers to lead today,while protecting their investments for the future.Our Lightspan MF

170、-14 product,launched in Q4,is the worlds first generation 6 broadband platform,enabling the convergence of all services on a single fiber infrastructure.This solution has already been selected by customers building 25G capable networks in Europe,North America and Asia Pacific.We have reinforced our

171、market leadership(3)in 5G Fixed Wireless Access with the worlds first large-scale,long-reach 5G mmWave deployment for Australias National Broadcaster nbn.IP Networks is a global leader in IP access,aggregation,and edge and core routing for residential,business,mobile,cloud and digital industry appli

172、cations.Our ability to offer high-performance and massively scalable networks is enabled though our industry-leading,in-house designed FP5 routing silicon and FP5-based routing platforms.Combined with our network automation and security platforms,we further enable customers to efficiently control,ma

173、nage,analyze and secure their IP networks.We are actively driving the next generation in IP routing 800 Gigabit Ethernet which we have trialed with customers including BT,DE-CIX and LINX.Our software-defined WAN solutions bring easy,efficient network connectivity configuration among clouds and to an

174、y enterprise branch.Our next-generation data center fabric makes cloud environments easier to scale,adapt and operate.Optical Networks is a leader in optical transport networks for metro,regional,long-haul and ultra-long-haul applications.Our approach helps communications service providers address t

175、he massive growth in bandwidth demand,while simplifying network operations through software tools and automation.This enables a more streamlined service delivery and a lower total cost of ownership.The portfolio includes coherent optical transponders,optical transport network switching,wavelength-di

176、vision multiplexing,reconfigurable optical add-drop multiplexer solutions and optical line systems.Our successful rollout of our fifth generation of coherent optical technology,based on our in-house designed PSE-V digital signal processor,highlights our focus on and commitment to technology innovati

177、on.Submarine Networks continues to be a leader in the growing undersea telecoms networks segment and saw continued growth in demand in 2022,led by hyperscalers and driven by factors ranging from increased cloud computing to virtual reality,as well as by the need to bring the advantages of connectivi

178、ty to previously underserved parts of the world.Our technology innovation and customer focus helped take Submarine Networks above EUR 1 billion in sales this year,a first for this business division.CompetitionOur competitors include Huawei and ZTE,along with Calix and Adtran(Fixed Networks),Cisco an

179、d Juniper(IP Networks),Ciena and Infinera(Optical Networks),and Subcom and NEC(Submarine Networks).Business groups continued“Network Infrastructure had a very successful 2022,driven by our technology leadership andstrong customer focus.”Federico Guilln President,Network InfrastructureBusiness groups

180、(1)Also excluding Russia and Belarus.(2)DellOro BB Access Report 2Q22.(3)650 Group Report 2Q22.Business overview27NOKIA IN 2022NOKIA IN 202226Market overviewThe estimated Mobile Networks addressable market(1)for 2022 was EUR 51 billion.We currently forecast an addressable market(1)of EUR 53 billion

181、by 2023,reflecting year-over-year growth of approximately 5%,excluding the impact of changes in foreign currency exchange rates.We see opportunities in 5G that go beyond building coverage and capacity for basic mobile voice and mobile broadband.This includes industrial 5G use cases with private wire

182、less networks in various segments such as manufacturing and logistics,seaports and cargo handling,airports and airline companies,mining vehicles and operations,utilities such as electricity,gas and water,smart agriculture,and smart cities.There are opportunities in 4G/5G network slicing,artificial i

183、ntelligence and machine learning(AI/ML)and network architecture evolution with Cloud RAN and O-RAN.We will also support the deployment of 5G-Advanced networks with feature and solution areas including Extended Reality(XR)and prepare capabilities for the introduction of 6G towards the end of the deca

184、de.The RAN market in 2022 faced various challenges including continued,industry-wide supply chain disruptions and geopolitical turbulence,largely and especially due to Russias invasion of Ukraine.However,outsideof Russia,Nokia grew its RAN sales inalmost all markets.Mobile NetworksMobile Networks cr

185、eates products and services covering all mobile technology generations.Itsportfolio includes products for radio access networks(RAN)and microwave radio(MWR)linksfor transport networks and solutions for network management,as well as network planning,optimization,network deployment and technical suppo

186、rt services.100 Gb/sNokia was first to showcase 100 Gb/second fiber broadband technology in the US800GEWe started enabling customers to roll out 800GE services1 000 km+We demonstrated 600G transmission over a1000 km+long-haul optical network2022 in briefIn 2022,Network Infrastructures net sales grew

187、 by 18%from 2021.Continued strong performance across all business divisionsparticularly Fixed Networks and Submarine Networkswas responsible for this result and helped take our segment operating margin up by 200 basis points to 12.2%.Launched Lightspan MF-14:the worlds first generation 6 broadband p

188、latform Chosen by Microsoft to implement our data switching portfolio for its data center networks Selected by nbn for our mmWave FWA technology By the end of 2022,we had more than 30 customers for FP5,and had undertaken trials with customers including BT Selected by TIME dotCom to build a high resi

189、lience optical network in Malaysia Took delivery of a new submarine cable maintenance vessel,boosting our existing fleet.Network Infrastructure continuedBusiness groups continuedTaking delivery of a new submarine cable maintenance vessel.Nokia demonstrates the latest IP and optical networking techno

190、logy to customers.Lightspan MF-14 is the worlds first generation 6 broadband platform.(1)Excluding China,Russia and Belarus.Business overview28NOKIA IN 202229NOKIA IN 2022from network design and optimization to deployment and technical support services.We are upgrading approximately two million node

191、s for our customers per year,while designing and optimizing more than 380 000 radio sites.In addition,over 400 customers are using our AI-driven Nokia Digital Assistant to help them solve network issues faster.Nokias technology is designed to be energy efficient and contribute towards mobile operato

192、rs climate and environmental targets.In 2022,Nokia announced the commercial availability of its liquid cooled AirScale Baseband portfolio,which enables a reduction in cooling system energy consumption of up to 90%.We also introduced the Intelligent RAN Operations solution for heightened 5Gnetwork ma

193、nagement,which reduces basestation energy consumption by up to15%.CompetitionThe RAN market is a highly consolidated market.Our main competitors are Huawei,Ericsson,Samsung and ZTE,but there are also a number of smaller competitors competing in specific technology or regional sub-segments,such as NE

194、C and Fujitsu.Smaller suppliers in the RAN market include,for example,Mavenir,Rakuten Symphony,Parallel Wireless and JMA Wireless.In MWR,our key competitors include Ceragon,NEC and Aviat,alongside Huawei and Ericsson.266commercial 5G deals in the form ofsupplyagreementsAt the end of 2022,our System-

195、on-Chip based 5G Powered by ReefShark product portfolio accounted for97%of shipments2022 in briefIn 2022,Mobile Networks net sales grew 10%to EUR 10.7 billion.We increased investments in R&D to accelerate our product roadmaps towards technology leadership.Despite these investments and inflationary p

196、ressures,improved cost competitiveness and execution meant we were still able to deliver a segment operating margin of 8.8%in 2022,remaining stable year-on-year.Reached 266 commercial 5G deals and had more than 560 private wireless customers,118 with 5G First to demonstrate innovative 5G features su

197、ch as three and four component carrier aggregation(3CC CA and 4CC CA)and network Expanded the Nokia Wavence MWR portfolio including a new dual-band,high-capacity outdoor transceiver with market-leading RF output power,helping to fulfill the needs of the rapidly growing rural broadband market Expande

198、d our partner base for Cloud RAN solutions,which now includes AWS,Google Cloud,Microsoft Azure,IBM,Dell and HPE.Mobile Networks continuedBusiness groups continuedBusiness overview and organizationLike many others,Nokia was impacted by industry-wide supply constraints,particularly in the first half o

199、f the year.However,Nokia was able to mitigate this impact,retaining all of its customers and the entirety of its global RAN footprint in 2022.Since the start of 2019,we have added 41 new RAN customers in the CSP market,and another 28 CSP customers have increased their earlier RAN share with Nokia.We

200、 also increased the rate of converting 4G customers to 5G from a cumulative 90%in the fourth quarter of 2021 to a cumulative 110%,excluding China,at the end of 2022.In 2022,we reached a cumulative number of 266 commercial 5G deals in the form of supply agreements,83 of which were live 5G networks by

201、 the end of the year.Nokia has also grown its private wireless business,which has expanded to include over 560 customers,100 of which are 5G customers.Nokia announced new,important 5G deals in the CSP market this year including those with Bharti Airtel and Reliance Jio in India,AT&T in Mexico,Ice in

202、 Norway,and Indosat Ooredoo Hutchison and XL Axiata in Indonesia.We also announced long-term expansion deals with existing 5G customers including Chunghwa Telecom and Taiwan Mobile in Taiwan,and Orange and T-Mobile in Poland.In 2022,Mobile Networks continued its investment in research and developmen

203、t to further strengthen our 5G portfolios competitiveness and bring the best-performing networks to our customers.We also completed our target of converting close to 100%of our 5G deliveries to ReefShark System-on-Chip(SoC)technology in 2022,while keeping a few selected products FPGA-based when doin

204、g so best suited the needs of the customer.In 2022,we demonstrated first-to-market 5G features including:Three and four component carrier aggregation(3CC CA and 4CC CA),which allows for increased data speeds and extended coverage,and announced related technology agreements with A1 Austria,BT in the

205、UK,China Mobile,du in the UAE,Optus in Australia,Telefnica Germany,T-Mobile in the US and stc in Saudi-Arabia.Nokia also announced a RAN slicing deal with Proximus in Belgium and demonstrated a new dynamic network slicing solution with Google,as well as the worlds first commercial 5G SA network with

206、 network slicing for Fixed Wireless Access with Telia in Finland.We also achieved an uplink speed record with Elisa and Qualcomm in Finland,leveraging millimeter wave spectrum with carrier aggregation,and the deployment of the worlds first 5G Edge Slicing solution on a live commercial network with C

207、ellcom in Israel and Telia in Finland.In 2022,we have also continued to invest in our Open RAN capabilities,with the majority of Nokias SoCs and new hardware and software platforms now being O-RAN ready.This gives us the opportunity to support customers that are interested in O-RAN.Nokia also expand

208、ed its partner base for Cloud RAN solutions and added IBM,Dell and HPE to its list of partners,which also includes Amazon Web Services(AWS),Google Cloud and Microsoft Azure.We also announced a 3GPP non-terrestrial(NTN)RAN deal with AST SpaceMobile that will enable them to offer direct-to-cell phone

209、connectivity from space a move which marks our entry and leadership into the emerging non-terrestrial networks(NTN)market segment.During 2022,several new products were added to the Nokia Wavence MWR portfolio.This includes a new dual-band,high-capacity outdoor transceiver.This will help to fulfil th

210、e needs of the rapidly growing rural broadband market.Nokia also trialed a live MWR backhaul connection utilizing D-Band spectrum.This will serve as an ultra-high-capacity extension for both 5G backhaul and fronthaul in dense urban environments.In services,we continued investing in digitalization an

211、d AI/ML-based capabilities to enable faster rollouts and the speedy resolution of network faults,while maximizing network performance.With our digital services portfolio,we are helping our customers accelerate their entire network lifecycle,“2022 saw Mobile Networks make progress with delivering sus

212、tainable,profitable growth.We continued with strong investments in research and development to secure technology leadership and grew our customer base,despite global supply constraints.”Tommi Uitto President,Mobile NetworksA Nokia AirScale antenna in Hong Kong.Business overview3031NOKIA IN 2022NOKIA

213、 IN 2022Business overview and organizationCNS is composed of four business units:Business Applications,Cloud and CognitiveServices,Core Networks,and Enterprise Solutions.Our emerging Software-as-a-Service(SaaS)delivery model underpins each business unit to help customers transition to greater networ

214、k flexibility and achieve faster time to value.InOctober 2022,we announced our NetworkMonetization Platform,which aims toaccelerate the monetization of our open products in Business Applications,Core,andMX Industrial Edge.CNS delivers cloud-native solutions that provide network quality of service an

215、d agility;and enable customers to leverage intelligence that facilitates network efficiency,self-protection and self-healing,and energy management.We deploy industrial solutions that drive digital transformation and Industry 4.0,and help CSPs automate network operations and manage security.In 2022,w

216、e were ranked#1 by Omdia for our 5G Standalone Core portfolio competitiveness strength(2);ranked#1 in Private Cellular Networks by 650 Group(3);awarded two TM Forum Excellence awards for our software in AI,Data&Insights and Customer Experience&Trust(4);rated#1 in automated assurance by Analysys Maso

217、n(5);and rated again by GlobalData as a Managed Infrastructure Services leader(6).We have rebalanced our investment to accelerate and scale our portfolio growth areas of 5G core software,analytics and AI Services,digital operations,monetization,private wireless and industrial automation,and security

218、.We believe these fast-growing,higher-margin areas are important to our CSP and enterprise customers and reflect our view on the emergence of a new digital ecosystem that is essential to value creation in a 5G world.Expanding on this view and how it has informed the rebalanced operations of CNS,the

219、new digital ecosystem is one in which we believe players will converge to combine their expertise to create services across areas such as Industry 4.0 and the metaverse;and in which application developers create new 5G services that are stitched together in a larger service chain,delivering end-user

220、 value and driving the monetization efforts that our CSPand enterprise customers are heavily focused on.CompetitionThe competitive environment comprises a large number of networking companies,infrastructure and application software suppliers,services specialists,hyperscalers,cloud providers and a wi

221、de range of industry segment businesses.The market in which we compete has vendors and other industry participants which may on occasion be a customer,a partner,and a direct competitor,depending on the nature of the engagement.We are regularly building and nurturing alliances with partners such as I

222、T vendors,hyperscalers,and systems integrators,which are increasingly influential in this space.Market overviewThe introduction and monetization of 5G networks and services,the cloudification of communications platforms and software and the transition to as-a-Service models are increasing demands on

223、 organizations to find new ways to generate returns on their digital assets,optimize costs,navigate complexity,and mitigate security risks for their mission-critical networks.The estimated CNS addressable market(1)for 2022 was approximately EUR 28 billion.We forecast a total addressable market(1)in

224、2023 of EUR 29 billion,reflecting year-over-year growth of approximately 4%,excluding the impact of changes in foreign currency exchange rates.Cloud and Network ServicesWith its combined cloud,software,and services capabilities,Cloud and Network Services(CNS)serves communication service providers(CS

225、Ps),enterprises,hyperscale customers,digital developers,and partners,and is helping them navigate three major industry transitions:the introduction and monetization of 5G networks,the cloudification of communications platforms and software,and the transition to as-a-Service models.These transitions

226、are shaping the emerging digital ecosystem.Business groups continued“CNS made important progress in 2022 in its mission to help customers and partners create new value,deliver innovative digital services,and transform business operations.This was done with solid momentum in rebalancing our portfolio

227、 and delivering year-over-year sales growth,as well as gross margin and segment operating profit growth.”Raghav Sahgal President,Cloud and Network Services(1)Excluding Russia and Belarus.(2)Omdia Market Landscape:Core 2022,June 2022.(3)650 Group,“Private Cellular Quarterly Market and Long-Term Forec

228、ast Report.”June 21,2022.(4)TM Forum Excellence Awards,September 2022.(5)Analysys Mason,Automated assurance:worldwide market shares 2021,July 2022.(6)Global Data Product Assessment report-Managed Infrastructure Services for telcos,February 15,2022.Business overview33NOKIA IN 2022NOKIA IN 202232Cloud

229、 and Network Services continuedWe have attained marketplace leadership in private wireless networking with more than 560 customers,of which118 include 5G6 Software-as-a-Service offerings announced including AVA Charging,AVA for Energy,andCore SaaSAI-based energy management automation can reduce ener

230、gy costs and carbon footprint by up to 30%2022 in briefWe made important progress in 2022.We continued to rebalance our business towards accelerated value creation for our customers,partners,and for Nokia in the emerging digital ecosystem,including private wireless and industrial edge.With that prog

231、ress,we generated net sales growth of 8%year-on-year and,through an improved cost position,posted a 5.3%segment operating margin,down 10 basis points from 2021,due to investments.Nokias 5G Core selected to support Comcasts mobile connectivity efforts Launched cloud-native IMS Voice Core product to s

232、implify network operations for communications service providers Strengthened private wireless leadership,with over 140 customers added in 2022 and deployments in 61 countries Key Enterprise launches included MX BOOST,DAC Wi-Fi,new Industrial devices,and MX Industrial Edge Signed multiple SaaS deals,

233、including one with Equideum Health to power its healthcare blockchain solutions Strengthened our software focus in security,automation,and monetization,withAI binding the portfolio together.Nokia TechnologiesNokia Technologies is responsible for managing Nokias patent portfolio and monetizing Nokias

234、 intellectual property,including patents,technologies and the Nokia brand.Market overviewNokia Technologies is responsible for managing Nokias patent portfolio and monetizing Nokias intellectual property,including patents,technologies and the Nokia brand,building on Nokias continued innovation leade

235、rship,long-term investment into research and development and decades of driving technology standards development.Licensees pay royalty fees for the use of our technology,which we re-invest,along with additional investment,in developing the next generation of inventions.Net sales for the full-year we

236、re up 6%to EUR 1 595 million and segment operating profit was up 2%at EUR 1 208 million.We signed over 50 new patent license agreements across our licensing programs,including a new agreement with Huawei.And revenues from our automotive,consumer electronics,and IoT programs,which were negligible in

237、2018,grew to more than EUR 100 million in 2022.Business groups continuedCNS delivers cloud-native solutions that provide network quality of service and agility;and enable customers to leverage intelligence that facilitates network efficiency,self-protection and self-healing,and energy management.NOK

238、IA IN 202234Business overview35NOKIA IN 20222022 in briefNet sales for the full-year were up 6%to EUR 1 595 million and segment operating profit was up 2%at EUR 1 208 million.Drove innovation,filing over 1 700 new inventions,and reaching 4 500 patent families declared as essential to 5G standards Si

239、gned over 50 new patent license agreements including a new agreement with Huawei Received a Technology&Engineering Emmy Award together with our partners for our video standardization efforts Introduced Immersive Voice,the next-generation voice communication solution with real-time spatial audio Cour

240、ts in Germany,the Netherlands and the UK ruled in our favor in our patent infringement proceedings against OPPO,OnePlus and Realme.Nokia Technologies continuedBusiness overview and organizationNokia Technologies has three business areas:Patent Licensing of Nokias patent portfolio,Technology Licensin

241、g of Nokias technologies for integration into consumer devices,and Brand Partnerships for licensing the Nokia brand.Patent Licensing:We manage the Nokia patent portfolio,working with other Nokia business groups,and continue to grow our patent licensing and monetization activities,which drive most of

242、 Nokia Technologies net sales.The core of our business is the mobile devices licensing program,where we have agreements with most major smartphone vendors.We also have patent licensing programs for consumer electronics,video services,automotive and the wider IoT domain.Technology Licensing:We licens

243、e our OZO Audio and OZO Playback multimedia technologies to smartphone and camera manufacturers,and drive advanced audio and video research and standardization,along with product incubation for new immersive voice and video solutions.Brand Partnerships:We license the Nokia brand a global brand that

244、is recognized by almost everyone to HMD Global,the company behind Nokia-branded phones and tablets,and other brand partners.Business groups continued“Our patented inventions power entire industries such as smartphones,consumer electronics,video services,automotive and the wider Internet of Things(Io

245、T)domain.”Jenni Lukander President,Nokia Technologies4 500+patent families declared as essential to 5G standards1 700+patents filed on new inventionsInnovation and standards leadershipNokia has defined many of the fundamental technologies used in virtually all mobile devices and taken a leading role

246、 in open standardization.Since 2000,Nokia has invested more than EUR 140 billion in research and development(R&D).As a result,we own one of the broadest and strongest patent portfolios in the telecommunications sector with around 20 000 patent families(each family can comprise several individual pat

247、ents).We own a leading share of Standard Essential Patents(SEPs)in every generation of cellular standards,with over 4 500 patent families declared as essential to 5G standards.We have been ranked#1 in several independent third-party studies for our cellular standards patents.Our portfolio also cover

248、s significant multimedia assets,particularly in video compression technology,which allows large files to be shared across the internet.The work of Nokias inventors in video research and standardization has been recognized with numerous prestigious awards,including five Technology&Engineering Emmy Aw

249、ards.Nokia was one of the first companies in the world to achieve the globally recognized ISO 9001 certification for our high-quality patent portfolio management processes.Our portfolio has a long lifetime,with the vast majority of patents still in force in ten years time.We continue to refresh our

250、portfolio with new inventions every year.In 2022,we filed patent applications on more than 1 700 new inventions,enabling 5G networks,connected 5G devices and more.As we continue to invest heavily in R&D and standardization,the annual number of filings is expected to grow.It all starts with the ingen

251、uity of our inventors.Last year we filed patents onover 1 700 new inventions.Business overview3637NOKIA IN 2022NOKIA IN 2022Supply chain,sourcing and manufacturingNokias supply chain is essential for our customers,our business,and for managing customer demand and supply for our hardware,software and

252、 contract manufactured products.Our end-to-end operations include sourcing,demand and supply planning,manufacturing,distribution and logistics.In 2022,we purchased over EUR 15 billion worth of products and services from around 11 000 different suppliers.While new opportunities for better managing ou

253、r supply chain emerged in 2022,there were also challenges.Rising geopolitical instability,the continued reduced availability of semiconductors,COVID-19-related lockdowns,and impacts stemming from climate change continued to affect operations across industries.Nokia did,however,perform well despite t

254、hese global challenges.Early in 2022,we saw meaningful constraints on our ability to supply our customers due to component availability,although as the situation improved through the second half of the year,the financial impact on our net sales for the full year was minimal.Cost inflation through th

255、e supply chain also impacted our margins but through continued focus on improving our product cost and careful management of our customer pricing,we were largely able to offset this and still deliver an improved gross margin in 2022.Increasing resilience through strong partnerships and a regional ap

256、proachAs we further develop a robust and sustainable supply chain that can best serve our customers,increasing resilience is critical.We continuously optimize our manufacturing,distribution and supplier network across the regions in which we operate to better serve our customers.We also leverage art

257、ificial intelligence and machine learning capabilities to better develop our supply chain and factory network.Our geographically dispersed manufacturing network consists of both our own manufacturing(23%of the network)and contract manufacturing partners to minimize geographic and geopolitical risks.

258、Our network is strategically located around the world:Europe(27%),Asia Pacific,Japan/India(27%),China(32%)and the Americas(14%).Our regional approach will not only enable us to deliver a more rapid response to our customers needs,but also reduce transportation costs and CO2 emissions.In 2022,we incr

259、eased manufacturing capacity with a contract manufacturer in Europe and opened a new distribution hub in Japan.Furthermore,we are in the process of further regionalizing our manufacturing and distribution to be closer to our customers in different regions.Due to the continued uncertainties caused by

260、 the current geopolitical situation,we have reviewed and optimized our inventory strategies to increase resilience.Where needed,we have successfully activated business continuity plans to ensure uninterrupted manufacturing.Sustainability through innovation We are committed to cutting greenhouse gas

261、emissions across our value chain by 50%by 2030,in line with our science-based target.This commitment requires action from us,but also from across our value chain.We work closely with the entirety of our supply chain to develop new digital solutions and product innovations to cut emissions.Our own fa

262、ctories are on track to be carbon neutral by 2025,powered by hydro,wind,solar and other sustainable sources.In 2022,we continued to work with our Electronics Manufacturing services suppliers to build the roadmaps to achieve a mutually agreed target that the Nokia portion of their manufacturing reach

263、 net zero by 2030.We clearly communicate our Third-party Codeof Conduct and Nokia Supplier Requirementswhich incorporate Responsible Business Alliance(RBA)Code of Conduct requirementsto our suppliers.These include standards for responsible sourcing in important areas such as the environment and huma

264、n rights.Adherence is checked through audits and EcoVadis documentation audits,before being followed-up via one-on-one sessions.In 2022,we also conducted dedicated learning sessions that focused on labor migration,diversity and inclusion,circularity and recycled materials.We continued to collaborate

265、 with our suppliers to encourage sustainable solutions in transportation,logistics and packaging.We are committed to prioritizing and strengthening resilience and sustainability across the end-to-end supply chain to help us deal with challenges that arise effectively,and to be prepared for any futur

266、e challenges.Refer to the“Sustainability and Corporate Responsibility”section for more information on Nokias sustainability targets and achievements,including those related to supplier sustainability.Despite the easing of global supply chain constraints towards the end of the year,2022 remained high

267、ly challenging,as ongoing supply chain disruptions continued to affect operations across industries.Supply chain,sourcing and manufacturing2022 in brief Increased manufacturing capacity with a contract manufacturer in Europe in order to better serve our European customers and opened a new distributi

268、on hub in Japan Enabled our Oulu factory to now operate on 99.6%renewable energy,and our Chennai factory on 63.2%renewable energy Showcased resiliency by utilizing pre-existing business continuity plans,with Nokia and our manufacturing partners rapidly able to move manufacturing temporarily from Ukr

269、aine to alternate locations,with minimal impact on business output Continued addressing with suppliers on labor rights due diligence via onsite and online assessments.Also conducted a deep dive into ethical recruitment and modern slavery topics Shared our new waste circularity requirement for 2030 a

270、nd established a baseline with our final assembly suppliers Held in-depth awareness and assessment on circular materials contents for key metals with materials suppliers.50%We are committed to cutting greenhouse gas emissions by 50%by 2030,in line with our science-based target.Own manufacturingAs of

271、 31 December 2022,the production capacity for our wholly owned sites is noted below:CountryLocationandproducts(1)Productive capacity,net(m2)(2)AustraliaKilsyth:radio frequency systems(3)5 400ChinaSuzhou:radio frequency systems(4)27 000FinlandOulu:base stations 10 000FranceCalais:submarine cables 61

272、000FranceTrignac:radio frequency systems(5)7 300GermanyHannover:radio frequency systems 23 500IndiaChennai:base stations,radio controllers and transmission systems,fixed networks14 385PolandBydgoszcz:remanufacturing,product integration 15 200UKGreenwich:submarine cables 11 000USAMeriden:radio freque

273、ncy systems(4)31 000(1)We consider the production capacity of our manufacturing network to be sufficient to meet the requirements of our business.The extent of utilization of our manufacturing facilities varies from plant to plant and from time to time during the year.None of these facilities is sub

274、ject to a material encumbrance.(2)Production capacity equals the total area allotted to manufacturing and to the storage of manufacturing-related materials.(3)The manufacturing activities in this site were ramped down during the fourth quarter of 2022.(4)In December 2022,Nokia entered into an agreem

275、ent regarding the partial or full disposal of this location.The disposal is expected to be completed during year 2023.(5)In January 2023,the relevant employee representatives were informed of a decision to initiate a study to stop all operations in this site within the second quarter of 2023.Our Oul

276、u factory now operates on 99.6%renewable energy.Business overview39NOKIA IN 2022NOKIA IN 202238Corporate governance statement 42Regulatory framework 42Main corporate governance bodies of Nokia 42Risk management,internal control and internal audit functions at Nokia 59Main procedures relating to insi

277、der administration 60Auditor fees and services 60Compensation 61Highlights 61Word from the Chair of the Personnel Committee of the Board 61Remuneration Policy 63Remuneration summary for the Board of Directors 63Remuneration summary for the President and CEO 64Remuneration Report 2022 67Introduction

278、67Remuneration of the Board of Directors 68Remuneration of the President and CEO 69Remuneration governance 71Group Leadership Team 72Review of our incentive plans 73Comparator companies 75Corporate governanceCorporate governance41NOKIA IN 2022NOKIA IN 202240Corporate governance statement“In 2022,we

279、continued delivering on Nokiascommitment to strong corporate governance and related practices.To do that,the activities of the Board of Directors are structured to develop the Companys strategy and to enable the Board to support and oversee the management onthe delivery of it within atransparent gov

280、ernance framework.”This corporate governance statement is prepared in accordance with Chapter 7,Section 7 of the Finnish Securities Markets Act(2012/746,as amended)and the Finnish Corporate Governance Code 2020(the“Finnish Corporate Governance Code”).Regulatory frameworkOur corporate governance prac

281、tices comply with Finnish laws and regulations,our Articles of Association approved by the shareholders and corporate governance guidelines(“Corporate Governance Guidelines”)adopted by the Board of Directors.The Corporate Governance Guidelines reflect our commitment to good corporate governance.They

282、 include the directors responsibilities,the composition and election of the members of the Board and its Committees,and certain other matters relating to corporate governance.We also comply with the Finnish Corporate Governance Code adopted by the Securities Market Association.In addition,we comply

283、with the rules and recommendations of Nasdaq Helsinki and Euronext Paris as applicable to us due to the listing of our shares on the exchanges.Furthermore,as a result of the listing of our American Depositary Shares on the New York Stock Exchange(NYSE)and our registration under the US Securities Exc

284、hange Act of 1934,we follow the applicable U.S.federal securities laws and regulations,including the Sarbanes-Oxley Act of 2002 as well as the rules of the NYSE,in particular the corporate governance standards under Section 303A of the NYSE Listed Company Manual.We comply with these standards to the

285、 extent such provisions are applicable to us as a foreign private issuer.To the extent compliance with any non-domestic rules would conflict with the laws of Finland,we are obliged to comply with Finnish laws and applicable regulations.There are no significant differences in the corporate governance

286、 practices applied by Nokia compared with those applied by U.S.companies under the NYSE corporate governance standards with the exception that Nokia complies with Finnish law with respect to the approval of equity compensation plans.Under Finnish law,stock option plans require shareholder approval a

287、t the time of their launch.All other plans that include the delivery of company stock in the form of newly issued shares or treasury shares require shareholder approval at the time of the delivery of the shares unless shareholder approval has been granted through an authorization to the Board,a maxi

288、mum of five years earlier.The NYSE corporate governance standards require that the equity compensation plans are approved by the companys shareholders.Nokia aims to minimize the necessity for,or consequences of,conflicts between the laws of Finland and applicable non-domestic corporate governance st

289、andards.In addition to the Corporate Governance Guidelines,the Committees of the Board have adopted charters that define each Committees main duties and operating principles.The Board has also adopted the Code of Conduct that applies to directors,executives,and employees of Nokia,as well as employee

290、s of Nokias subsidiaries and affiliated companies(such as joint ventures)in which Nokia owns a majority of the shares or exercises effective control.Furthermore,the Board has adopted the Code of Ethics applicable to our key executives,including the President and CEO,CFO and Corporate Controller.Main

291、 corporate governance bodies of NokiaPursuant to the provisions of the Finnish Limited Liability Companies Act(2006/624,as amended)(the“Finnish Companies Act”),the legislation under which Nokia operates,and Nokias Articles of Association,the control and management of Nokia are divided among sharehol

292、ders at a general meeting of shareholders,the Board,the President and CEO and the Group Leadership Team,chaired by the President and CEO.General Meeting of ShareholdersNokias shareholders play a key role in corporate governance,with our Annual General Meeting offering a regular opportunity to exerci

293、se their decision-making power in Nokia.In addition,at the meeting the shareholders may exercise their right to speak and ask questions.Each Nokia share entitles a shareholder to one vote at general meetings of Nokia.The Annual General Meeting decides,among other things,on the election and remunerat

294、ion of the Board,the adoption of annual accounts,the distribution of retained earnings shown on the balance sheet,discharging the members of the Board and the President and CEO from liability,as well as on the election and fees of the external auditor.As of the Annual General Meeting 2020,the Remune

295、ration Policy is presented to the general meeting at least every four years and the Remuneration Report annually as of 2021.Resolutions of the general meeting regarding the policy and the report are advisory.In addition to the Annual General Meeting,an Extraordinary General Meeting may be convened w

296、hen the Board considers such a meeting to be necessary,or when the provisions of the Finnish Companies Act mandate that such a meeting must be held.Corporate governance statementCorporate governance frameworkThe Finnish Companies Act was amended on 11 July 2022 to enable limited liability companies

297、to hold hybrid and virtual-only general meetings.The legal requirements for these type of meetings are stringent in Finland,namely,to protect the shareholders rights.A virtual general meeting,as defined by the Finnish Companies Act,is a meeting held without a physical meeting venue,where shareholder

298、s must be able to exercise their shareholder rights in full and in real-time by virtual means,including by voting in real-time and asking questions orally during the meeting.Once reliable technical methods for automated foreign shareholder identification become available in Finland,virtual general m

299、eetings would improve the position of nominee-registered private shareholders residing outside of Finland,who in practice may have been unable to attend the general meeting in person or be represented by proxy.The benefits of the virtual general meetings would further include the reduced environment

300、al footprint and the ability of the company to hold a general meeting also under extraordinary external circumstances such as navigating through restrictions on physical gatherings.Nokia is actively involved in discussions how to enable the automated identification of foreign shareholders as we beli

301、eve the Finnish legislation should be considered a model example of protecting shareholders rights in the hybrid and virtual meetings.Annual General Meeting 2022 and 2023The Annual General Meeting 2022 took place at the Companys headquarters in Espoo on 5 April 2022.To prevent the spread of the COVI

302、D-19 pandemic,the Board resolved on extraordinary measures pursuant to the temporary legislation approved by the Finnish Parliament on 8 May 2021.The Annual General Meeting 2022 was held without shareholders and their proxy representatives being present at the meeting venue.Participation in the Annu

303、al General Meeting and use of shareholder rights was possible only by voting in advance as well as by submitting counterproposals and asking questions in advance.A total of 59 301 shareholders representing a record number of approximately 3 100 million shares and votes participated the Annual Genera

304、l Meeting through advance voting and the Boards proposals were supported by at least 91%of the votes casted.We were pleased to see both the record number of votes as well as the strong shareholders support received for all of the Boards proposals at the Annual General Meeting 2022.Nokia Corporations

305、 Annual General Meeting 2023 is planned to be held on 4 April 2023.Proposals of the Board of Directors to the Annual General Meeting 2023 were published on 26 January 2023.Board of DirectorsThe operations of Nokia are managed under the direction of the Board,within the framework set by the Finnish C

306、ompanies Act and Nokias Articles of Association as well as any complementary rules of procedure as defined by the Board,such as the Corporate Governance Guidelines and the charters of the Boards Committees.Election and composition of the Board ofDirectorsPursuant to the Articles of Association of No

307、kia Corporation,we have a Board that is composed of a minimum of seven and a maximum of 12 members.The members of the Board are elected at least annually at each Annual General Meeting with a simple majority of the shareholders votes cast at the meeting.The term of a Board member begins at the close

308、 of the general meeting at which he or she was elected,or later as resolved by the general meeting,and expires at the close of the following Annual General Meeting.The Annual General Meeting convenes by 30 June annually.Our Boards leadership structure consists of a Chair and Vice Chair elected annua

309、lly by the Board and confirmed by the independent directors of the Board from among the Board members upon the recommendation of the Corporate Governance and Nomination Committee.The Chair of the Board has certain specific duties as stipulated by Finnish law and our Corporate Governance Guidelines.T

310、he Vice Chair of the Board assumes the duties of the Chair of the Board in the event he or she is prevented from performing his or her duties.The independent directors of the new Board also confirm the election of the members and chairs for the Boards Committees from among the Boards independent dir

311、ectors upon the recommendation of the Corporate Governance and Nomination Committee and based on each Committees member qualification standards.These elections take place at the Boards assembly meeting following the general meeting.The Corporate Governance and Nomination Committees aim is to continu

312、ally renew the Board to ensure an efficient Board of international professionals with a diverse mix of skills,experience and other personal qualities in line with the diversity principles established by the Board.The Corporate Governance and Nomination Committee considers potential director candidat

313、es based on the short-and long-term needs of the Company.In the process to identify and select the candidates matching these needs and desired profiles,the Committee engages search firms and external advisors.Corporate governance4243NOKIA IN 2022NOKIA IN 2022Proposed members of the Board ofDirectors

314、Proposals of the Board of Directors to the Annual General Meeting 2023 were published on 26 January 2023.On the recommendation of the Boards Corporate Governance and Nomination Committee,the Board proposes to the Annual General Meeting that the number of Board members be ten.Bruce Brown and Edward K

315、ozel have informed that they will no longer be available to serve on the Nokia Board of Directors after the Annual General Meeting.Consequently,the Board proposes,on the recommendation of the Boards Corporate Governance and Nomination Committee,that the following eight current Board members be re-el

316、ected as members of the Nokia Board of Directors for a term ending at the close of the next Annual General Meeting:Sari Baldauf,Thomas Dannenfeldt,Lisa Hook,Jeanette Horan,Thomas Saueressig,Sren Skou,Carla Smits-Nusteling and Kai istm.Furthermore,the Board proposes,on the recommendation of the Corpo

317、rate Governance and Nomination Committee,that the following new members be elected to the Board for a term ending at the close of the next Annual General Meeting:Timo Ahopelto,entrepreneur and Founding Partner of Lifeline Ventures,a venture capital firm;and Elizabeth Crain,co-founder and Chief Opera

318、ting Officer of Moelis&Company,a global investment bank.The Corporate Governance and Nomination Committee will propose in the assembly meeting of the new Board of Directors that Sari Baldauf be re-elected to serve as Chair of the Board and Sren Skou be re-elected to serve as Vice Chair of the Board,

319、subject to their election to the Board of Directors.The Board composition proposed to the Annual General Meeting 2023 has representation of six nationalities and 50%of the proposed members are female.The proposed members of the Board are all non-executive.For the term beginning at the Annual General

320、 Meeting 2023,all Board member candidates have been determined to be independent of Nokia and its significant shareholders under the Finnish corporate governance rules and the rules of the NYSE.Any possible changes impacting the independence assessment would be assessed as of the date of the Annual

321、General Meeting.The Corporate Governance and Nomination Committee has prepared the proposed composition of the Board of Directors to the Annual General Meeting 2023 after careful assessment on proposed Directors external time commitments,taking into account shareholders expectations in this regard.W

322、hile the prevailing Finnish market practice is to vote on the proposed Board composition as a slate,some of our investors have expressed their preference of being able to vote on Directors individually.Nokia has been actively involved in the initiative to supplement the market practice as well as th

323、e Finnish Corporate Governance Code to enable the individual director election method in Finland.We are proud to be among the first Finnish companies to introduce this individual director election method and provide our shareholders with the opportunity to participate in the vote on individual Board

324、 member candidates in our forthcoming Annual General Meeting in 2023.Board independenceIn accordance with the Corporate Governance Guidelines adopted by the Board of Directors,the Board shall have a majority of Directors who meet the criteria for independence as defined by the Finnish Corporate Gove

325、rnance Code(independent of both the company and any significant shareholders who hold at least 10%or more of the total shares or voting rights of the Company)and the rules of the NYSE.Furthermore,all of the members of the Board Committees shall be independent Directors under the relevant criteria fo

326、r independence required by the Finnish Corporate Governance Code and the applicable rules of the NYSE.The Board will monitor its compliance with these requirements for Director independence on an ongoing basis.Each independent director is expected to notify the Chair of the Corporate Governance and

327、Nomination Committee,as soon as reasonably practicable,in the event that his or her personal circumstances change in a manner that may affect the Boards evaluation of such directors independence.The Board of Directors evaluates the independence of its members annually and,in addition to this,on a co

328、ntinuous basis with the assistance of the Nomination and Governance Committee.Board diversityThe Board has adopted principles concerning Board diversity describing our commitment to promoting a diverse Board composition and how diversity is embedded into our processes and practices when identifying

329、and proposing new Board candidates as well as when proposing re-election of current Board members.At Nokia,diversity is not a static concept but rather a relevant mix of required elements for the Board as a whole that evolves with time based on,among other things,the relevant business objectives and

330、 future needs of Nokia.Board diversity is treated as a means of improvement and development rather than an end in itself.Diversity of our Board is considered from a number of aspects including,but not limited to,skills and experience,tenure,age,nationality,ethnicity,cultural and educational backgrou

331、nds,self-declared gender identity,sexual orientation as well as other individual qualities.The Board shall include representatives of more than one gender.Nokia acknowledges and supports the resolution adopted by the Finnish Government on 17 February 2015 on gender equality on the boards of director

332、s of Finnish large and mid-cap listed companies,as well as the board gender balance directive adopted by the European Parliament on 22 November 2022.We report annually on our objectives relating to equal representation of both genders,the means to achieve them,and the progress we have made in achiev

333、ing them.We have met our aim to have at least 40%of the Director positions held by members of the underrepresented genders on our Board composition.Also in the Board composition proposed to the Annual General Meeting 2023,50%of the Board members are female.Director time commitmentsThe Corporate Governance and Nomination Committee monitors closely the time commitments of the Board members and annua