nokia-annual-report-2022

Nokia in 2022 04 Letter from our President and CEO 10 Our strategy 14 Our history 22 Customer Experience 24 Business groups 26 Network Infrastructure 26 Mobile Networks 29 Cloud and Network Services 32 Nokia Technologies 35 Supply chain, sourcing and manufacturing 38 Business overview Business overview 03 NOKIA IN 2022 NOKIA IN 2022 02

0 10671 2022 2021 2020 10 398 9 717 10 671 0 3350 2022 2021 2020 3 087 3 089 3 351 0 044 2022 2021 2020 6 736 7 674 9 047 2022 2021 2020 1 402 1 502 1 595 0 1595 0.0 8.8 2022 2021 2020 7.9% 7.9% 8.8% -2.2 5.4 2022 2021 2020 (2.2)% 5.4% 5.3% 0.0 12.2 2022 2021 2020 6.8% 10.2% 12.2% 2022 2021 2020 80.1% 78.9% 75.7% 0.0 80.1 Our business groups Nokia has four business groups with each business group aiming to become a technology and market leader in their respective sector. Nokia in 2022 Mobile Networks creates products and services covering all network 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 Networks Cloud and Network Services enables CSPs and enterprises to deploy and monetize 5G, cloud-native software and as-a-Service delivery models. Cloud and Network Services Network Infrastructure provides fiber, fixed wireless access technologies, copper, IP routing, data center, subsea and terrestrial optical networks – along with related services – to customers including communications service providers, webscales (including hyperscalers), digital industries and governments. Network Infrastructure Nokia Technologies is responsible for managing Nokia’s patent portfolio and monetizing Nokia’s intellectual property including patents, technologies and the Nokia brand. Nokia Technologies Segment 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 overview 08 09 NOKIA IN 2022 NOKIA IN 2022

Our strategy We 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 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 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 addressable 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 maintains 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 from 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, resulting 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 software, 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 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 also 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 market 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 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 criteria for vendor selection. 2 Enterprises Enterprise 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 8% CAGR until 2027, with the private wireless market reaching 27% CAGR. Enterprise verticals An 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 public 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 public sector and in energy. We estimate that IP routing and optical networks will also continue to grow moderately in these segments. Webscalers Webscaler refers to companies that provide cloud-based solutions and services. Alphabet (Google Cloud Platform), Amazon (Amazon Web Services) and Microsoft (Azure) 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 traffic requires adoption of higher bit rate technologies also in IP routing. 3 Licensees Licensees refers to companies who have agreed licenses to use Nokia’s intellectual property. This includes the licensing of Nokia’s patent portfolio, the licensing of technologies for integration into consumer devices 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 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 and 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 some areas. Enterprise verticals Digitalization and automation of operations in industrial segments Transition to software-centric operations and adoption of industrial OT edge and on-premise clouds Energy and manufacturing as early adopters of private wireless and automation solutions Federal, state government and cities network modernization acceleration Webscalers Edge computing as a growth engine – industrial automation workloads across on-premise, edge, public cloud Partnering with CSPs to co-locate edge stacks and building an ecosystem for low-latency apps Targeting telco and network workloads to run on their cloud infrastructure Collaborating with CSPs in the transformation of network operations CSPs Enterprise Licensees Acceleration of ESG and Cybersecurity Maturity 1 2 3 Focus on connectivity strengths and using cost optimization via automation and asset carve outs to fund both fiber and 5G investments Favoring cloud strengths in vendor and partner ecosystem Network monetization targeting enterprise and edge use cases Patent portfolio with long life-time the vast majority of Nokia’s patents still in force in ten years’ time New inventions every year in 2022, Nokia filed patent applications on more than 1 700 new inventions, enabling 5G networks, connected 5G devices and more Annual number of patent filings expected to grow due to continued investments in R&D and standardization Entire industries powered by our fundamental cellular and multimedia inventions providing us with the opportunity to expand our licensing coverage; we are making good progress in our growth areas of consumer electronics, automotive, and IoT Business overview 14 15 NOKIA IN 2022 NOKIA IN 2022

Our strategy continued We see the network as critical to realizing the enormous range of potential that the metaverse opens in the industrial, enterprise and consumer spheres as we approach 2030. Our Technology Vision 2030 Our Technology Vision provides directional input to Nokia’s technology strategy and roadmap, serving as a valuable platform for strategic engagement with our customers and key stakeholders. We periodically 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 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 technologies, 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 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 traction 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 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 a distributed architecture and 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 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-service propositions. No single company will be able to provide all the solutions, and we expect a rich 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 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, and we expect a rich ecosystem to develop around collaboration, co-innovation and partnering.” H u m a n A u g m e n t a t i o n D i g i t a l - P h y s i c a l F u s i o n Multi-party Value ecosystem Network of Networks Specialized Sub-networks Network-as-a-Service Business overview 20 21 NOKIA IN 2022 NOKIA IN 2022

Network Infrastructure Network 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 networks, and optical transport for both terrestrial and subsea applications. Market overview Demand for connectivity continues to be strong. Meanwhile, our customers—who include CSPs, enterprises, governments, webscalers and hyperscalers—are turning their attention to future drivers of demand. These include enterprise 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 change 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 serve 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 market, 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 and organization Our business divisions are: Fixed Networks, IP Networks, 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 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-14 product, launched in Q4, is the world’s 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 market leadership (3) in 5G Fixed Wireless Access with the world’s first large-scale, long-reach 5G mmWave deployment for Australia’s 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 applications. 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, manage, 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 any 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 the 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-division 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 innovation. 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 connectivity 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. Competition Our competitors include Huawei and ZTE, along with Calix and Adtran (Fixed Networks), Cisco and 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 and strong customer focus.” Federico Guillén President, Network Infrastructure Business groups (1) Also excluding Russia and Belarus. (2) Dell’Oro BB Access Report 2Q22. (3) 650 Group Report 2Q22. Business overview 27 NOKIA IN 2022 NOKIA IN 2022 26

Business overview and organization CNS is composed of four business units: Business Applications, Cloud and Cognitive Services, Core Networks, and Enterprise Solutions. Our emerging Software-as-a-Service (SaaS) delivery model underpins each business unit to help customers transition to greater network flexibility and achieve faster time to value. In October 2022, we announced our Network Monetization Platform, which aims to accelerate the monetization of our open products in Business Applications, Core, and MX Industrial Edge. CNS 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. We deploy industrial solutions that drive digital transformation and Industry 4.0, and help CSPs automate network operations and manage security. In 2022, we 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 Mason (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. 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 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 value and driving the monetization efforts that our CSP and enterprise customers are heavily focused on. Competition The competitive environment comprises a large number of networking companies, infrastructure and application software suppliers, services specialists, hyperscalers, cloud providers and a wide 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 IT vendors, hyperscalers, and systems integrators, which are increasingly influential in this space. Market overview The 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 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 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 Services With its combined cloud, software, and services capabilities, Cloud and Network Services (CNS) serves communication service providers (CSPs), 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 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 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 Forecast 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 overview 33 NOKIA IN 2022 NOKIA IN 2022 32

Supply chain, sourcing and manufacturing Nokia’s supply chain is essential for our customers, our business, and for managing customer demand and supply for our hardware, software and 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 our 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 these 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 the 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 approach As 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 artificial 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. 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 CO 2 emissions. In 2022, we increased 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 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 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 factories 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 net zero by 2030. We clearly communicate our Third-party Code of Conduct and Nokia Supplier Requirements—which incorporate Responsible Business Alliance (RBA) Code of Conduct requirements—to our suppliers. These include standards for responsible sourcing in important areas such as the environment and human 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 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 future challenges. Refer to the “Sustainability and Corporate Responsibility” section for more information on Nokia’s 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 highly challenging, as ongoing supply chain disruptions continued to affect operations across industries. Supply chain, sourcing and manufacturing 2022 in brief ■ Increased manufacturing capacity with a contract manufacturer in Europe in order to better serve our European customers and opened a new distribution 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 Ukraine 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 and 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 manufacturing As of 31 December 2022, the production capacity for our wholly owned sites is noted below: Country Location and products (1) Productive capacity, net (m 2 ) (2) Australia Kilsyth: radio frequency systems (3) 5 400 China Suzhou: radio frequency systems (4) 27 000 Finland Oulu: base stations 10 000 France Calais: submarine cables 61 000 France Trignac: radio frequency systems (5) 7 300 Germany Hannover: radio frequency systems 23 500 India Chennai: base stations, radio controllers and transmission systems, fixed networks 14 385 Poland Bydgoszcz: remanufacturing, product integration 15 200 UK Greenwich: submarine cables 11 000 USA Meriden: radio frequency 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 subject 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 agreement 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 Oulu factory now operates on 99.6% renewable energy. Business overview 39 NOKIA IN 2022 NOKIA IN 2022 38

Corporate governance statement 42 Regulatory framework 42 Main corporate governance bodies of Nokia 42 Risk management, internal control and internal audit functions at Nokia 59 Main procedures relating to insider administration 60 Auditor fees and services 60 Compensation 61 Highlights 61 Word from the Chair of the Personnel Committee of the Board 61 Remuneration Policy 63 Remuneration summary for the Board of Directors 63 Remuneration summary for the President and CEO 64 Remuneration Report 2022 67 Introduction 67 Remuneration of the Board of Directors 68 Remuneration of the President and CEO 69 Remuneration governance 71 Group Leadership Team 72 Review of our incentive plans 73 Comparator companies 75 Corporate governance Corporate governance 41 NOKIA IN 2022 NOKIA IN 2022 40

Corporate governance statement “In 2022, we continued delivering on Nokia’s commitment to strong corporate governance and related practices. To do that, the activities of the Board of Directors are structured to develop the Company’s strategy and to enable the Board to support and oversee the management on the delivery of it within a transparent governance 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 framework Our corporate governance practices 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 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 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 Exchange 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 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 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 at 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 maximum of five years earlier. The NYSE corporate governance standards require that the equity compensation plans are approved by the company’s shareholders. Nokia aims to minimize the necessity for, or consequences of, conflicts between the laws of Finland and applicable non-domestic corporate governance standards. In addition to the Corporate Governance Guidelines, the Committees of the Board have adopted charters that define each Committee’s 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 employees of Nokia’s 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 corporate governance bodies of Nokia Pursuant 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 Nokia’s Articles of Association, the control and management of Nokia are divided among shareholders 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 Shareholders Nokia’s shareholders play a key role in corporate governance, with our Annual General Meeting offering a regular opportunity to exercise 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 remuneration 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 Remuneration 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 when 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 statement Corporate governance framework The Finnish Companies Act was amended on 11 July 2022 to enable limited liability companies 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 shareholders 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 meetings 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 environmental 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 believe the Finnish legislation should be considered a model example of protecting shareholders’ rights in the hybrid and virtual meetings. Annual General Meeting 2022 and 2023 The Annual General Meeting 2022 took place at the Company’s headquarters in Espoo on 5 April 2022. To prevent the spread of the COVID-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 Annual 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 General Meeting through advance voting and the Board’s 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 Board’s proposals at the Annual General Meeting 2022. Nokia Corporation’s 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 Directors The operations of Nokia are managed under the direction of the Board, within the framework set by the Finnish Companies Act and Nokia’s 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 Board’s Committees. Election and composition of the Board of Directors Pursuant to the Articles of Association of Nokia 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 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 Board’s leadership structure consists of a Chair and Vice Chair elected annually 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. The 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 Board’s Committees from among the Board’s independent directors upon the recommendation of the Corporate Governance and Nomination Committee and based on each Committee’s member qualification standards. These elections take place at the Board’s assembly meeting following the general meeting. The Corporate Governance and Nomination Committee’s aim is to continually 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 candidates 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 governance 42 43 NOKIA IN 2022 NOKIA IN 2022

Proposed members of the Board of Directors Proposals of the Board of Directors to the Annual General Meeting 2023 were published on 26 January 2023. On the recommendation of the Board’s 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 Kozel 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 Board’s Corporate Governance and Nomination Committee, that the following eight current Board members be re-elected 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, Søren Skou, Carla Smits-Nusteling and Kai Öistämö. Furthermore, the Board proposes, on the recommendation of the Corporate 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 Operating 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 Søren Skou be re-elected to serve as Vice Chair of the Board, 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 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 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. While 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 the 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 member candidates in our forthcoming Annual General Meeting in 2023. Board independence In 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 Governance 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 for 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 Nomination Committee, as soon as reasonably practicable, in the event that his or her personal circumstances change in a manner that may affect the Board’s evaluation of such director’s independence. The Board of Directors evaluates the independence of its members annually and, in addition to this, on a continuous basis with the assistance of the Nomination and Governance Committee. Board diversity The 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 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 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 backgrounds, 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 directors 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 achieving 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 commitments The Corporate Governance and Nomination Committee monitors closely the time commitments of the Board members and annually reviews the Directors’ attendance rate at the Board and relevant Committee meetings to ensure they are able to devote the appropriate time to the Company to carry out their duties and responsibilities. The Corporate Governance Guidelines of the Board include numerical limits and a process for pre-clearance of new roles in public companies. Directors should not serve on more than four other boards of public companies in addition to the Nokia Board, and no more than on three other boards of public companies in addition to the Nokia Board, in case they serve as board chair or lead independent director outside the Nokia Board. The Audit Committee members should not serve on more than two other audit committees of public companies in addition to the Nokia Audit Committee. No positions in excess of these limits may be held without a prior consent by the Chair of the Board and the Chair of the Corporate Governance and Nomination Committee determining that such positions would not impair the Director’s service on the Nokia Board or Audit Committee. The Corporate Governance and Nomination Committee will annually, ahead of preparing the proposal on the Board composition, review and assess the Directors’ current and planned time commitments outside the Company to seek affirmation that all Directors acknowledge the time commitment principles set forth in the Corporate Governance Guidelines of the Board. Current members of the Board of Directors The Annual General Meeting held on 5 April 2022 elected ten members to the Board for a term ending at the close of the next Annual General Meeting. Sari Baldauf, Bruce Brown, Thomas Dannenfeldt, Jeanette Horan, Edward Kozel, Søren Skou and Carla Smits-Nusteling were re-elected as Board members. Lisa Hook, Thomas Saueressig and Kai Öistämö were elected as new Board members. Following the meeting, the Board re-elected Sari Baldauf to serve as Chair and Søren Skou as the new Vice Chair of the Board for a term ending at the close of the next Annual General Meeting. The current members of the Board are all non-executive. For the term that began at the Annual General Meeting 2022, 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, as applicable. Currently there are six different nationalities represented on the Board and 40% of the Board members are female. In addition to biographical information of the Board members, the following table sets forth also the number of shares and American Depositary Shares (ADS) held by the members of the Board at 31 December 2022, when they held a total of 969 511 shares and ADSs in Nokia, which represented approximately 0.02% of our total shares and voting rights excluding shares held by the Nokia Group. Corporate governance statement continued Experience and skills of the Board members Business Exec role with P&L responsibility External boardroom roles/ Governance expertise Finance and accounting Legal/Public policy/ Compliance Communications service provider market segment Enterprise market segment Technology Cybersecurity Environmental/ Social issues Current Board Members Sari Baldauf Søren Skou Bruce Brown Thomas Dannenfeldt Lisa Hook Jeanette Horan Edward Kozel Thomas Saueressig Carla Smits-Nusteling Kai Öistämö Proposed new Board Members Timo Ahopelto Elizabeth Crain Gender Year of Birth Nationality Tenure (1) Independent of the company and major shareholders Shares (2) ADSs (2) Sari Baldauf (Chair) Female 1955 Finnish 4 Independent 243 148 Søren Skou (Vice Chair) Male 1964 Danish 3 Independent 66 377 Bruce Brown Male 1958 American 10 Independent 202 941 Thomas Dannenfeldt Male 1966 German 2 Independent 80 139 Lisa Hook Female 1958 American 0 Independent 15 227 Jeanette Horan Female 1955 British 5 Independent 95 058 Edward Kozel Male 1955 American 5 Independent 122 944 Thomas Saueressig Male 1985 German 0 Independent 14 816 Carla Smits-Nusteling Female 1966 Dutch 6 Independent 114 045 Kai Öistämö Male 1964 Finnish 0 Independent 14 816 (1) Terms as Nokia Board member before the Annual General Meeting on 5 April 2022. (2) The number of shares or ADSs includes shares and ADSs received as director compensation as well as shares and ADSs acquired through other means. Stock options or other equity awards that are deemed as being beneficially owned under the applicable SEC rules are not included. Corporate governance 44 45 NOKIA IN 2022 NOKIA IN 2022

Biographical details of our current Board members Chair Sari Baldauf b. 1955 Chair of the Nokia Board since 2020. Board member since 2018. Member of the Corporate Governance and Nomination Committee and the Personnel Committee. Master of Business Administration, Helsinki School of Economics and Business Administration, Finland. Bachelor of Science, Helsinki School of Economics and Business Administration, Finland. Honorary doctorates in Technology (Helsinki University of Technology, Finland) and Business Administration (Turku School of Economics and Business Administration and Aalto University School of Business, Finland). Executive Vice President and General Manager, Networks Business Group, Nokia 1998–2005. Various executive positions at Nokia in Finland and in the United States 1983–1998. Member of the Supervisory Board and Member of the Nomination Committee of Mercedes-Benz Group AG. Member of the Board of Directors of Aalto University. Senior Advisor of DevCo Partners Oy. Member of the Board of Directors and Member of the Executive Committee of Technology Industries of Finland. Member of the Supervisory Board of Deutsche Telekom AG 2012–2018. Chair of the Board of Directors of Fortum Corporation 2011–2018. Member of the Board of Directors of Akzo Nobel 2012–2017. Vice Chair Søren Skou b. 1964 Vice Chair of Nokia Board since 2022. Nokia Board member since 2019. Member of the Personnel Committee. MBA (honours), IMD, Switzerland. Bachelor of Business Administration, Copenhagen Business School, Denmark. Maersk International Shipping Education (M.I.S.E.). Chief Executive Officer of A.P. Møller – Mærsk A/S 2016–2022. Chief Executive Officer of Maersk Line 2012–2016. Chief Executive Officer of Maersk Tankers 2001–2011. Variety of executive roles, senior positions and other roles at A.P. Møller – Mærsk since 1983. Chairman of the Board of the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping (a not-for-profit foundation). Member of The European Round Table for Industry. Lisa Hook b. 1958 Nokia Board member since 2022. Member of the Audit Committee. Juris Doctorate, Dickinson School of Law at Pennsylvania State University, the United States. Bachelor’s degree in Public Policy, Duke University, the United States. President and CEO of Neustar, Inc. 2010–2018. COO of Neustar, Inc. 2008–2010. President and CEO of Sunrocket, Inc. 2006–2007. Executive positions at America Online, Inc. 2000–2004. Previous positions as Partner at Brera Capital Partners, managing director of Alpine Capital Group, LLC., various executive positions at Time Warner, Inc., legal advisor to the Chairman of the Federal Communications Commission, and General Counsel of the Cable Group at Viacom International, Inc. Member of the Board of Directors and Chair of the Risk and Technology Committee of Fidelity National Information Services, Inc. Member of the Board of Directors and Chair of the Consumer Relationships and Regulation Committee of Philip Morris International. Member of the Board of Directors of Ritchie Bros. Auctioneers Inc. and Chair of the Compensation Committee. Member of the Board of Zayo Group and Cube IQ. Chair of Advisory Board of Trilantic Capital Partners. Member of the U.S. National Security Telecommunications Advisory Committee since 2012. Member of the Board of Directors of Ping Identity Holding Corporation 2019–2022, Partners Group Holdings 2020–2021 and Unisys Corporation 2019–2021. Member of the Board of Directors of Neustar, Inc. 2010–2019. Previous Board memberships at RELX Plc and RELX NV, 2006–2016, Covad Communications 2005–2007, Time Warner Telecom 1999–2001, K-12 Inc. and National Geographic Ventures. Honored as a 2012 Penn State Alumni Fellow for leadership in technology by the Dickinson School of Law and Pennsylvania State University. Jeanette Horan b. 1955 Nokia Board member since 2017. Member of the Audit Committee and the Technology Committee. MBA, Business Administration and Management, Boston University, the United States. BSc, Mathematics, University of London, the United Kingdom. Various executive and managerial positions at IBM 1998–2015. Vice President of Digital Equipment Corporation 1994–1998. Vice President, Development of Open Software Foundation 1989–1994. Member of the Supervisory Board at Wolters Kluwer, and the Chair of the Selection and Remuneration Committee. Member of the Board of Advisors at Jane Doe No More, a non-profit organization. Member of the Board of Directors of the Ridgefield Symphony Orchestra, a non-profit organization. Member of the Board of Advisors of Cybereason 2017–2018. Member of the Board of Directors of West Corporation 2016–2017 and Microvision 2006–2017. Edward Kozel b. 1955 Nokia Board member since 2017. Chair of the Technology Committee and member of the Audit Committee. Degree in Electrical Engineering and Computer Science, University of California, the United States. President and CEO of Range Networks 2013–2014. Owner of Open Range 2000–2013. Chief Technology and Innovation Officer and member of the Board of Management of Deutsche Telekom 2010–2012. CEO of Skyrider 2006–2008. Managing Director of Integrated Finance 2005–2006. Senior Vice President, Business development and Chief Technology Officer and Board member of Cisco 1989–2001. Member of the Advisory Board at Telia Ventures 2016–2020. Various Board memberships in 1999–2009. Thomas Saueressig b. 1985 Member of the Executive Board of SAP SE and Global Head of SAP Product Engineering. Nokia Board member since 2022. Member of the Technology Committee. Degree in Business Information Technology, University of Cooperative Education in Mannheim, Germany. Joint Executive MBA from ESSEC, France and Mannheim Business School, Germany. Chief Information Officer of SAP SE 2016–2019, Vice President, Global Head of IT Services of SAP SE 2014–2016. Held various positions at SAP in Germany since 2007, including assignment in the SAP Labs Silicon Valley in Palo Alto, California, the United States. Member of the Young Global Leaders of the World Economic Forum. Member of the Industry Advisory Board of the Munich Institute of Robotics and Machine Intelligence (MIRMI). Chair Sari Baldauf Lisa Hook Thomas Dannenfeldt Thomas Saueressig Bruce Brown Edward Kozel Vice Chair Søren Skou Jeanette Horan Corporate governance statement continued Bruce Brown b. 1958 Nokia Board member since 2012. Chair of the Personnel Committee. Member of the Corporate Governance and Nomination Committee and the Technology Committee. MBA, Xavier University, the United States. BS (Chemical Engineering), Polytechnic Institute of New York University, the United States. Chief Technology Officer of the Procter & Gamble Company 2008–2014. Various executive and managerial positions in Baby Care, Feminine Care, and Beauty Care units of the Procter & Gamble Company since 1980 in the United States, Germany and Japan. Member of the Board of Directors, Chair of the Compensation Committee and member of the Nominating and Corporate Governance Committee of the Glatfelter Company. Member of the Board of Directors, the Audit Committee and the Compensation Committee of Medpace Inc. 2016–2019. Member of the Board of Directors of Agency for Science, Technology & Research (A*STAR) in Singapore 2011–2018. Thomas Dannenfeldt b. 1966 Nokia Board member since 2020. Member of the Audit Committee and the Personnel Committee. Degree in Mathematics, University of Trier, Germany. Chief Financial Officer of Deutsche Telekom AG 2014–2018. Chief Financial Officer of Deutsche Telekom’s German operations 2010–2014. Various operational positions (sales, marketing, customer care, finance and procurement in fixed and mobile business, national and international positions) at Deutsche Telekom 1992–2010. Chair of the Supervisory Board of Ceconomy AG and Chair of the Presidential Committee and Mediation Committee. Member of the Board of Advisors at axxessio GmbH. Member of the Board of Directors of T-Mobile US 2013–2018 and Buy-In 2013–2018. Chair of the Board of Directors of T-Systems International 2013–2018 and EE Ltd. 2014–2016. Corporate governance 46 47 NOKIA IN 2022 NOKIA IN 2022

Carla Smits-Nusteling b. 1966 Nokia Board member since 2016. Chair of the Audit Committee and member of the Corporate Governance and Nomination Committee. Master’s Degree in Business Economics, Erasmus University Rotterdam, the Netherlands. Executive Master of Finance and Control, Vrije University Amsterdam, the Netherlands. Member of the Board of Directors and Chief Financial Officer of KPN 2009–2012. Various financial positions at KPN 2000–2009. Various financial and operational positions at TNT/PTT Post 1990–2000. Member of the Board of Directors and Chair of the Audit Committee of Allegro.eu SA. Member of the Board of Directors of the Stichting Continuïteit Ahold Delhaize (SCAD) foundation. Chair of the Board of Directors of TELE2 AB 2013–2023. Lay Judge in the Enterprise Court of the Amsterdam Court of Appeal 2015–2022. Member of the Supervisory Board and Chair of the Audit Committee of ASML 2013–2021. Member of the Management Board of the Unilever Trust Office 2015–2019. Kai Öistämö b. 1964 President and CEO of Vaisala Corporation. Nokia Board member since 2022. Chair of the Corporate Governance and Nomination Committee and member of the Technology Committee. PhD in computer science, Tampere University of Technology, Finland. Chief Operating Officer of InterDigital, Inc. 2018–2020. Executive Partner, Siris Capital Group 2016–2018. EVP, Chief Development Officer, Nokia 2010–2014. EVP, Devices Nokia 2008–2010. EVP, Mobile Phones Business Group, Nokia 2006–2008. Several previous positions at Nokia since 1991. Chairman of the Board of Fastems Group 2014–2022. Member of the Board of Directors of Sanoma Group 2010–2021. Chairman of the Board of Helvar Oy Ab 2014–2020. Member of the Board of Directors of Mavenir Plc. 2017–2018. Member of the Board of Directors of Digia / Qt Group Oyj 2015–2018. Member of the Board of Directors of InterDigital, Inc. 2015–2018. Member of the Board of Directors of Oikian solutions Oy 2014–2018. Chairman of the Board, Tampere University 2013–2017. Chairman of the Board of Directors, Tekes 2012–2014. Member of the Board of Directors of Nokian Renkaat Oyj 2008–2010. Operations of the Board of Directors The Board represents and is accountable to the shareholders of Nokia. While its ultimate statutory accountability is to the shareholders, the Board also takes into account the interests of Nokia’s other stakeholders. The Board’s responsibilities are active, not passive, and include the responsibility to evaluate the strategic direction of Nokia, its management policies and the effectiveness of the implementation of such by the management on a regular basis. It is the responsibility of the members of the Board to act in good faith and with due care, so as to exercise their business judgment on an informed basis, in a manner that they reasonably and honestly believe to be in the best interests of Nokia and its shareholders. In discharging this obligation, the members of the Board must inform themselves of all relevant information reasonably available to them. The Board and each Board Committee also have the power to appoint independent legal, financial or other advisors as they deem necessary. The Company will provide sufficient funding to the Board and to each Committee to exercise their functions and provide compensation for the services of their advisors. The Board is ultimately responsible for, and its duties include, monitoring and reviewing Nokia’s financial reporting process, the effectiveness of related control and audit functions and the independence of Nokia’s external auditor, as well as monitoring the Company’s statutory audit. The Board’s responsibilities also include overseeing the structure and composition of our top management and monitoring legal compliance and the management of risks related to our operations. In doing so, the Board may set annual ranges and/or individual limits for capital expenditures, investments and divestitures and other financial and non-financial commitments that may not be exceeded without a separate Board approval. In risk management, the Board’s role includes risk analysis and assessment in connection with financial, strategy and business reviews, updates and decision-making proposals. Risk management policies and processes are an integral part of Board deliberations and risk-related updates are provided to the Board on a recurring basis. For a more detailed description of our risk management policies and processes, refer to “Risk management, internal control and internal audit functions at Nokia—Main features of risk management systems”. The Board has the responsibility for appointing and discharging the President, the Chief Executive Officer, Chief Financial Officer and Chief Legal Officer. The Board approves and the independent directors of the Board confirm the compensation and terms of employment of the President and CEO, subject to the requirements of Finnish law, upon the recommendation of the Personnel Committee of the Board. The compensation and terms of employment of the other Group Leadership Team members are approved by the Personnel Committee upon the recommendation of the President and CEO. Board oversight of environmental and social activities and governance practices (ESG) Under our Corporate Governance Guidelines, the Board evaluates Nokia’s environmental and social activities and governance practices (ESG), related risks and target setting as well as their implementation and effectiveness in the Company. In 2022, the Board approved the new enhanced ESG strategy of the Company focusing on the environment, industrial digitalization, security & privacy, bridging the digital divide, and responsible business. The Board also reviewed the related risks and opportunities, approved the targets on climate change and diversity included in the short-term incentive program, monitored them and other ESG targets as well as the evolving ESG requirements and expectations, investor feedback and the disclosure approach. In addition, the Board Committees monitor environmental and social developments and activities in the Company in their respective areas of responsibilities. During 2022, the Audit Committee’s responsibilities included, amongst others, the implementation planning of new climate and other sustainability reporting requirements, as well as oversight of the ethics and compliance program and information and services security risks and maturity. The Audit Committee also annually reviews sustainability disclosures as well as the use of conflict minerals in Nokia’s products presented in the annual reports and the related regulatory filings. The Personnel Committee assists the Board in the incorporation of the ESG related metrics in the incentive structures and oversees the human capital management, including personnel policies and practices related to Nokia culture, physical safety, employee wellbeing, diversity, recruiting, development and retention. The Corporate Governance and Nomination Committee assesses and advises the Board in the environmental, social and governance (ESG) related activities and practices aiming to enhance the governance structure supporting them. The Technology Committee has reviewed how the Company’s new ESG strategy embeds into its technology strategy and roadmaps. While the oversight of the security risks and their management, including cybersecurity, is a Board level responsibility in the Company, the detailed reviews of the different security domains are allocated to the Board’s different committees. The responsibilities of the Audit Committee include oversight of the IT and services security risks and maturity. The Technology Committee oversees the product and customer security risk management. The oversight of the physical risks belongs to the Personnel Committee. Corporate governance statement continued Carla Smits-Nusteling Kai Öistämö Corporate governance 48 49 NOKIA IN 2022 NOKIA IN 2022

Corporate governance statement continued Key areas of focus for the Board’s and its Committees’ activities in 2022 The table below sets out a high-level overview of the key areas of focus for the Board’s and its Committees’ activities during the year. February February/March April May July September/October December Board – Business and financial reviews – Q4 and 2021 financials – Strategy – AGM proposals, incl. reinstating dividend – Share buyback program – Annual Policy and Charter review – Review of CEO’s performance, targets and remuneration – Russian invasion of Ukraine – Annual report – Remuneration Report 2021 – AGM and appointing Board Chair, Vice Chair and Committee members – Business and financial reviews – Strategy – Geopolitical update – Investor relations and corporate governance update – Q1 financials – Annual sustainability review – Business and financial reviews – Strategy – Ethics & compliance – Litigation update – Digitalization update – Business and financial reviews – Q2 financials – Strategy – Nokia innovation framework – Annual strategy meeting – External market perspective – Business and financial reviews – Group Leadership Team (GLT) succession planning – Q3 financials – Business and financial reviews – Strategy – Annual and long-range forecast and target setting – Board evaluation – Key risks review – Digitalization update – Investors’ feedback on Nokia ESG Corporate Governance and Nomination Committee – AGM proposals on Board composition and remuneration – Committee compositions – Corporate governance statement – AGM shareholder feedback – Planning of Board composition proposal – Corporate governance developments – Status of Board composition proposal – Board evaluation approach – Board remuneration review and benchmarking – Annual assessment of director commitments – Finalizing Board composition proposal to the AGM – Annual Charter review Personnel Committee – Incentive achievements for 2021 – CEO and GLT performance – Incentive targets and objectives for 2022 – Nokia Equity Program proposal 2022 – Culture – AGM shareholder feedback – GLT remuneration – Human capital risk review – PC Advisor’s market and benchmarking update – Status of 2023 incentive and equity framework – Human capital update – GLT succession planning – 2023 incentive targets – 2023 equity plans – Investor and proxy advisor feedback – Planning of Remuneration Report for 2022 – Annual Charter review Audit Committee – Q4 and 2021 accounting – Auditor reporting – Ethics and compliance, internal audit and internal controls updates – AGM proposals to the Board – Annual report for 2021, including ESG reporting – Auditor reporting – Q1 accounting – Auditor reporting – Ethics and compliance, internal audit and internal controls updates – Cybersecurity; IT and service security – Tax update – Conflict Minerals Reporting – Q2 accounting – Auditor reporting – Ethics and compliance, internal audit and internal controls updates – Finance IT and digitalization – Q3 accounting – Auditor reporting – Ethics and compliance, internal audit, internal controls updates – ESG reporting developments – Treasury update – Pensions update – Audit, internal audit and internal controls updates – Privacy program – Cybersecurity; IT and service security – Annual Charter and Policy Technology Committee – Updates on major innovation and technology trends – Review of strategic technology initiatives – Annual Charter review – Cybersecurity; Group security update and approach – Review of strategic technology initiatives – Cybersecurity; product and customer security – Updates on major innovation and technology trends – Review of strategic technology initiatives – ESG technology strategy and roadmap – Updates on major innovation and technology trends – Review of strategic technology initiatives – Cybersecurity; product and customer security – Review of strategic technology initiatives Corporate governance 50 51 NOKIA IN 2022 NOKIA IN 2022

Board evaluation In line with our Corporate Governance Guidelines, the Board conducts a comprehensive annual performance evaluation, which also includes evaluation of the Board Committees’ work, the Board and Committee Chairs and individual Board members. The Board evaluation is conducted as a self-evaluation typically with a detailed questionnaire while an external evaluator is periodically engaged. Feedback is also requested from selected members of management as part of the Board evaluation process. The questions aim to measure and elicit feedback on the processes, structure, accountability, transparency, and effectiveness of the Board and to gain an overview of the issues that are areas of excellence, areas where the Board thinks greater focus is warranted and determining areas where the performance could be enhanced. Each year, the results of the evaluation are discussed and analyzed by the entire Board and improvement actions are agreed based on such discussions. In 2022, the evaluation process was carried out as a self-evaluation using an external evaluation platform that included both numeric assessments and the possibility to provide more detailed written comments. The questionnaire comprised areas such as Nokia purpose and strategy, Board agenda and meetings, Board members’ talent and culture, Board composition and dynamics as well as information, reporting and risk management. Meetings of the Board of Directors The Board of Directors constitutes a quorum if more than half of its members are present. The Board held 18 meetings excluding Committee meetings during 2022. In total nine (50%) of these meetings were regular meetings in person or by video connection. The other meetings were held in writing. Directors’ attendance at the Board and Committee meetings in 2022 is set forth in the table below: Member Board Meeting Attendance Board and Committee Meeting Attendance (1) Meetings % Meetings % Sari Baldauf (Chair) 18/18 100 27/27 100 Søren Skou (Vice Chair) 18/18 100 22/23 96 Bruce Brown 18/18 100 32/32 100 Thomas Dannenfeldt 18/18 100 30/30 100 Lisa Hook (as of 5 April 2022) 13/13 100 16/17 94 Jeanette Horan 17/18 94 27/29 93 Edward Kozel 18/18 100 29/29 100 Thomas Saueressig (as of 5 April 2022) 13/13 100 16/16 100 Carla Smits-Nusteling 18/18 100 28/28 100 Kari Stadigh (until 5 April 2022) 5/5 100 7/7 100 Kai Öistämö (as of 5 April 2022) 13/13 100 19/19 100 Average Attendance (%) 99 98 (1) Any director who so wishes may attend, as a non-voting observer, meetings of committees of which they are not members. Figures exclude directors attending committee meetings as non-voting observers. Directors meet without the management in connection with each regularly scheduled meeting. According to Board practices, meetings without management present are only attended by non-executive directors. These meetings are chaired by the non-executive Chair of the Board. In case the non-executive Chair of the Board is unable to chair these meetings, the non-executive Vice Chair of the Board chairs the meeting. Additionally, the independent directors would meet separately at least once annually. In 2022, all members of the Board were non-executive and determined to be independent from Nokia and significant shareholders under the Finnish corporate governance standards and the rules of the NYSE. Committees of the Board of Directors The Board of Directors has four committees that assist the Board in its duties pursuant to their respective committee charters. The Board may also establish ad hoc committees for detailed reviews or consideration of particular topics to be proposed for the approval of the Board. Any director who so wishes may attend, as a non-voting observer, meetings of committees of which they are not members. Board of Directors Audit Committee Corporate Governance and Nomination Committee Personnel Committee Technology Committee Oversees the accounting and financial as well as non-financial reporting processes of Nokia and the audits of its financial statements as well as the internal controls and compliance program. In addition, oversees ESG related reporting requirements, IT and services security, privacy program as well as tax, treasury and pension activities. Prepares the proposals for the general meetings in respect of the composition of the Board and the director remuneration to be approved by the shareholders, oversees the Directors’ time commitments and independence and monitors issues and practices related to corporate governance and proposes necessary actions in respect thereof. Oversees the human capital management related policies and practices at Nokia. Assists the Board in discharging its responsibilities in relation to all compensation and related matters, including remuneration policy and reporting, equity compensation, and remuneration of Nokia’s executives and their terms of employment. Follows major innovation and technology trends and reviews related key initiatives of Nokia. Oversees product and customer security. The Audit Committee The following table sets forth the members of the Audit Committee and their meeting attendance in 2022: Member Attendance (meetings) Attendance % Carla Smits-Nusteling (Chair) 6/6 100 Thomas Dannenfeldt 6/6 100 Lisa Hook (as of 5 April 2022) 3/4 75 Jeanette Horan 5/6 83 Edward Kozel 6/6 100 Average attendance (%) 92 The Committee consists of a minimum of three members of the Board who meet all applicable independence, financial literacy and other requirements as stipulated by Finnish law and the rules of Nasdaq Helsinki and the NYSE. As of 5 April 2022, the Audit Committee has consisted of the following five members of the Board: Carla Smits-Nusteling (Chair), Thomas Dannenfeldt, Lisa Hook, Jeanette Horan and Edward Kozel. The Committee is responsible for assisting the Board in the oversight of: ■ the quality and integrity of the Company’s financial and non-financial reporting and related disclosures; ■ the statutory audit of the Company’s financial statements; including the sustainability reporting therein; ■ the external auditor’s qualifications and independence; ■ the performance of the external auditor subject to the requirements of Finnish law; ■ the performance of the Company’s internal controls, risk management and the assurance function; ■ the performance of the internal audit function; ■ the Company’s compliance with legal and regulatory requirements, including the performance of its ethics and compliance program; ■ the monitoring and assessment of any related party transactions; ■ the pension liabilities and taxation of the Company; and ■ the processes and management related to the cybersecurity of the Company, including IT and services security. In discharging its oversight role, the Audit Committee has full access to all Company books, records, facilities and personnel. The Audit Committee also maintains procedures for the receipt, retention and treatment of complaints received by Nokia regarding accounting, internal controls, or auditing matters and for the confidential, anonymous submission by our employees of concerns relating to accounting or auditing matters. Nokia’s disclosure controls and procedures, which are reviewed by the Audit Committee and approved by the President and CEO and the Chief Financial Officer, as well as the internal controls over financial reporting, are designed to provide reasonable assurance regarding the quality and integrity of Nokia’s financial statements and related disclosures. For further information on internal control over financial reporting, refer to “Risk management, internal control and internal audit functions at Nokia–Description of internal control procedures in relation to the financial reporting process”. Under the Finnish Companies Act, an external auditor is elected by a simple majority vote of the shareholders at the Annual General Meeting for one year at a time. The Audit Committee prepares the proposal to the shareholders, upon its evaluation of the qualifications and independence of the external auditor, of the nominee for election or re-election. Under Finnish law, the fees of the external auditor are also approved by the shareholders by a simple majority vote at the Annual General Meeting. The Committee prepares the proposal to the shareholders in respect of the fees of the external auditor, and approves the external auditor’s annual audit fees under the guidance given by the Annual General Meeting. For information about the fees paid to Nokia’s external auditor, Deloitte Oy, during 2022 refer to “Auditor fees and services” below. The Board has determined that all members of the Audit Committee, including its Chair, Carla Smits-Nusteling, are “audit committee financial experts” as defined in the requirements of Item 16A of the Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (SEC). Carla Smits-Nusteling and each of the other members of the Audit Committee are “independent directors” as defined by Finnish law, the Finnish Corporate Governance Code and in Section 303A.02 of the NYSE Listed Company Manual. The Audit Committee meets a minimum of four times a year. The Committee meets separately with the representatives of Nokia’s management, heads of the internal audit, and ethics and compliance functions, and the external auditor in connection with each regularly scheduled meeting. The head of the internal audit function has, at all times, direct access to the Audit Committee, without the involvement of management. Audit Committee pre-approval policies and procedures The Audit Committee of the Board is responsible, among other matters, for oversight of the external auditor’s independence, subject to the requirements of applicable legislation. The Audit Committee has adopted a policy regarding an approval procedure of audit services performed by the external auditors of the Nokia Group and permissible non-audit services performed by the principal external auditor of the Nokia Group (the “Pre-approval Policy”). Under the Pre-approval Policy, proposed services either: (i) may be pre-approved by the Audit Committee in accordance with certain service categories described in the Pre-approval Policy (general pre-approval); or (ii) require the specific pre-approval of the Audit Committee (specific pre-approval). The Pre-approval Policy sets out the audit, audit-related, tax and other services that have received the general pre-approval of the Audit Committee. All other audit, audit-related (including services related to internal controls and significant mergers and acquisitions projects), tax and other services are subject to specific pre-approval by the Audit Committee. All service requests concerning generally pre-approved services are submitted to an appointed Audit Committee delegate within management, who determines whether the services are within the generally pre-approved services. The Pre-approval Policy is subject to annual review by the Audit Committee. The Audit Committee establishes budgeted fee levels annually for each of the categories of audit and non-audit services that are pre-approved under the Pre-approval Policy, namely, audit, audit-related, tax and other services. At each regular meeting of the Audit Committee, the auditor provides a report in order for the Audit Committee to review the services that the auditor is providing, as well as the cost of those services. Corporate governance statement continued Corporate governance 52 53 NOKIA IN 2022 NOKIA IN 2022

The Committee consists of three to five members of the Board who meet all applicable independence requirements as stipulated by Finnish law and the rules of Nasdaq Helsinki and the NYSE. As of 5 April 2022 the Corporate Governance and Nomination Committee has consisted of the following four members of the Board: Kai Öistämö (Chair), Sari Baldauf, Bruce Brown and Carla Smits-Nusteling. The Committee fulfills its responsibilities by: ■ actively identifying individuals qualified to be elected members of the Board as well as considering and evaluating the appropriate level and structure of director remuneration; The Committee consists of a minimum of three members of the Board who meet all applicable independence requirements as stipulated by Finnish law and the rules of Nasdaq Helsinki and the NYSE. As of 5 April 2022 the Personnel Committee has consisted of the following four members of the Board: Bruce Brown (Chair), Sari Baldauf, Thomas Dannenfeldt and Søren Skou. The Committee has overall responsibility for evaluating, resolving and making recommendations to the Board regarding: ■ preparing the Remuneration Policy and the Remuneration Report; ■ compensation and terms of employment of the Company’s senior management; ■ preparing and evaluating the principles regarding Board diversity; ■ preparing proposals to the shareholders on the director nominees for election at the general meetings as well as director remuneration; ■ monitoring significant developments in the law and practice of corporate governance, including the sustainability-related governance trends and of the directors’ duties and responsibilities; ■ assisting the Board and each Committee of the Board in its annual performance evaluations, including establishing criteria to be applied in connection with such evaluations; ■ human capital management; ■ all equity-based plans; ■ incentive compensation plans, policies and programs of the Company affecting executives; and ■ possible other significant incentive plans. The Committee is responsible for preparing the Remuneration Policy, including Nokia’s compensation philosophy and principles and ensuring that the Company’s compensation programs are performance-based, designed to contribute to long-term shareholder value creation in line with shareholders’ interests, properly motivate management, are aligned with the Remuneration Policy as well as support overall corporate strategies. ■ developing and administering Nokia’s Corporate Governance Guidelines and giving recommendations regarding them to the Board; and ■ reviewing Nokia’s disclosure in the corporate governance statement. The Committee has the power and practice to appoint a recruitment firm to identify appropriate new director candidates. The Committee also oversees human capital management and periodically reviews the personnel policies and practices of Nokia related to human capital management and social responsibilities relating to its employees, including Company culture, physical safety, employee wellbeing, morale, diversity, equity and inclusion, talent management and development, succession planning, resourcing, recruiting, attrition, retention and employee engagement. Corporate governance statement continued The Corporate Governance and Nomination Committee The following table sets forth the members of the Corporate Governance and Nomination Committee and their meeting attendance in 2022: Member Attendance (meetings) Attendance % Kai Öistämö (Chair) (as of 5 April 2022) 3/3 100 Sari Baldauf 4/4 100 Bruce Brown 4/4 100 Carla Smits-Nusteling 4/4 100 Kari Stadigh (until 5 April 2022) 1/1 100 Average attendance (%) 100 The Personnel Committee The following table sets forth the members of the Personnel Committee and their meeting attendance in 2022: Member Attendance (meetings) Attendance % Bruce Brown (Chair) 5/5 100 Sari Baldauf 5/5 100 Thomas Dannenfeldt (as of 5 April 2022) 4/4 100 Søren Skou 4/5 80 Kari Stadigh (until 5 April 2022) 1/1 100 Average attendance (%) 96 The Committee consists of a minimum of three members of the Board who meet applicable independence requirements as stipulated by Finnish law and the rules of Nasdaq Helsinki and the NYSE and have such skills in innovation, technology and science matters as the Board determines adequate from time to time. As of 5 April 2022 the Technology Committee has consisted of the following five members of the Board: Edward Kozel (Chair), Bruce Brown, Jeanette Horan, Thomas Saueressig and Kai Öistämö. In its dialogue with and provision of opinions and advice to the management, the Committee will periodically review: ■ the Company’s technological competitiveness and new strategic technology initiatives as well as market trends, considering both organic as well as inorganic options to retain or attain competitiveness; ■ the Company’s approach to major technological innovations; ■ key technology trends that may result in disruptive threats or opportunities and the proposals on how to adequately address them; ■ high-level risks and opportunities associated with the Company’s Research and Development Programs; ■ embedding sustainability in the technology roadmaps; and ■ the processes and management related to the cybersecurity of the Company, including product and customer security. The Technology Committee The following table sets forth the members of the Technology Committee and their meeting attendance in 2022: Member Attendance (meetings) Attendance % Edward Kozel (Chair) 5/5 100 Bruce Brown 5/5 100 Jeanette Horan 5/5 100 Thomas Saueressig (as of 5 April 2022) 3/3 100 Kai Öistämö (as of 5 April 2022) 3/3 100 Thomas Dannenfeldt (until 5 April 2022) 2/2 100 Average attendance (%) 100 Group Leadership Team and the President and CEO The Group Leadership Team is responsible for the operative management of Nokia. The Group Leadership Team is chaired by the President and CEO. The President and CEO’s rights and responsibilities include those allotted to the President under Finnish law. On 31 December 2022, the Group Leadership Team consisted of 10 members, including the President and CEO, representing six different nationalities. In total 30% of the Group Leadership Team members were female. In addition to biographical information of the Group Leadership team members, the table below sets forth the number of shares and ADSs held by the members as at 31 December 2022, a total of 3 612 050 Nokia shares. These holdings represented approximately 0.06% of our total shares and voting rights excluding shares held by the Nokia Group. Name Position Gender Year of birth Nationality On GLT since Shares (1) ADSs (1) Pekka Lundmark President and CEO Male 1963 Finnish 2020 1 289 304 Nishant Batra Chief Strategy and Technology Officer Male 1978 Indian 2021 507 531 Ricky Corker Chief Customer Experience Officer Male 1967 Australian 2019 361 554 Federico Guillén President of Network Infrastructure Male 1963 Spanish 2016 406 408 Amy Hanlon-Rodemich Chief People Officer Female 1972 American 2022 – Jenni Lukander President of Nokia Technologies Female 1974 Finnish 2019 76 788 Raghav Sahgal President of Cloud and Network Services Male 1962 American 2020 473 310 Melissa Schoeb Chief Corporate Affairs Officer Female 1968 American 2021 127 342 Tommi Uitto President of Mobile Networks Male 1969 Finnish 2019 139 559 Marco Wirén Chief Financial Officer Male 1966 Finnish/Swedish 2020 230 254 {1) At 31 December 2022, no ADSs were held by the Group Leadership Team members. The number of shares or ADSs includes shares and ADSs received as compensation as well as shares and ADSs acquired through other means. Stock options or other equity awards that are deemed as being beneficially owned under the applicable SEC rules are not included. At present, our Group Leadership Team consists of 11 members, following the appointment of Esa Niinimäki as Chief Legal Officer in January 2023. The current Group Leadership Team has a representation of six different nationalities and 27% of the members are female. Corporate governance 54 55 NOKIA IN 2022 NOKIA IN 2022

Amy Hanlon-Rodemich b. 1972 Chief People Officer (CPO). Group Leadership Team member since 2022. Joined Nokia in 2022. Master of Human Resources and Organizational Development, University of San Francisco, the United States. Bachelor of Arts in English, Tufts University, Boston, the United States. Chief People Officer, GlobalLogic, a Hitachi Group Company 2019–2022. Vice President, Human Resources, Synopsys, Inc. 2017–2019. Executive Vice President, People Success, Milestone Technologies 2016–2017. Director and Global HR Head, Yahoo 2013–2016. Various positions such as Senior HR Business Partner, Senior Manager, Director, Global Talent Development Operations, VMware 2004–2013. Employee Relations Specialist, Technology Credit Union 2003–2004. Human Resources Manager, CAT Technology 2000–2003. Manager, Staffing Programs, Inktomi Corporation 1996–2000. Member of the Board, Exceptional Women Awardees Foundation. Advisory Board member, Topia, Inc. Advisory Board Member, BrightPlan. Co-Chair and Governing Board Member, CHRO Executive Summit (Evanta). Board Member, Bay Area Executive Development Network. Jenni Lukander b. 1974 President of Nokia Technologies. Group Leadership Team member since 2019. Joined Nokia in 2007. Master of Laws, University of Helsinki, Finland. Senior Vice President, Head of Patent Business, Nokia 2018–2019. Vice President, Head of Patent Licensing, Nokia 2018. Vice President, Head of Litigation and Competition Law, Nokia 2016–2018. Director, Head of Regulatory and Competition Law, Nokia 2015–2016. Director, Head of Competition Law, Nokia 2011–2015. Senior Legal Counsel, Nokia 2007–2011. Visiting lawyer, Nokia 2001. Lawyer, Roschier Ltd. 1999–2007. Esa Niinimäki b. 1976 Chief Legal Officer (CLO) and Board Secretary. Group Leadership Team member since 2023. Joined Nokia in 2007. Master of Laws, Fordham University, School of Law, New York, the United States. Master of Laws, University of Helsinki, Finland. Interim Chief Legal Officer, Nokia 2022–2023. Deputy Chief Legal Officer, Vice President, Corporate Legal and Board Secretary, Nokia 2018–2023. General Counsel, Global Services, Nokia 2015–2018. Head of Corporate Legal, Nokia Solutions and Networks and Head of Finance & Labor Legal, Nokia 2013–2015. Senior Legal Counsel, Legal and IP, India, Middle East and Africa, Nokia 2012–2013. (Senior) Legal Counsel, Corporate Legal, Nokia 2007–2011. Group Legal Counsel, Metsä Group 2005–2007. Associate Lawyer, White & Case LLP 2003–2005. Member of the Market Practice Board of Securities Market Association, Finland; the Advisory Board of the Finnish Listed Companies; the Legal Affairs Committee of the Confederation of Finnish Industries and the Policy Committee of the Directors’ Institute of Finland. Raghav Sahgal b. 1962 President of Cloud and Network Services. Group Leadership Team member since 2020. Joined Nokia in 2017. Master of Science in Computer Systems Management, University of Maryland, the United States. Bachelor of Science in Computer Engineering, Tulane University, New Orleans, the United States. Executive Business Certificate in General Management, Harvard University, the United States. President of Nokia Enterprise 2020. Senior Vice President, Nokia Software 2017–2020. President, NICE Ltd. Asia Pacific and the Middle East 2010–2017. Advisory Board Member, Orga Systems 2010–2014. Vice President, Communications Business Unit, Asia Pacific & Japan, Oracle 2008–2010. Chief Business Officer, Comverse 2005–2006. Executive Vice President, Asia Pacific, CSG 2002–2005. Vice President, Software Products Group Asia Pacific, Lucent Technologies 2000–2002. Melissa Schoeb b. 1968 Chief Corporate Affairs Officer (CCAO). Group Leadership Team member since 2021. Joined Nokia in 2021. Bachelor of Arts in International Relations and Spanish, University of Mary Washington, Virginia, the United States. Fellowship Recipient, Four Freedoms Foundation, Rome, Italy. Vice President, Corporate Affairs, Occidental 2017–2021. Vice President, Communications and Public Affairs, Occidental 2012–2017. Senior Director, Communications and Public Affairs, Occidental 2007–2012. Senior Vice President and Senior Partner, General Manager and other senior positions, FleishmanHillard 2002–2007. Director of Global Communications, Nortel Networks 2000–2002. Vice President, Technology, FleishmanHillard 1998–2000. Business Director, The VenCom Group Inc. 1995–1997. Consultant, London, the United Kingdom and Washington D.C., the United States, Gemini Consulting 1991–1995. Member of the Arthur Page Society and The Seminar. Member of Mary Washington University College of Business Executive Advisory Board. Corporate governance statement continued Biographical details of the current members of the Nokia Group Leadership Team Pekka Lundmark b. 1963 President and Chief Executive Officer (CEO) since 2020. Rejoined Nokia in 2020. Master of Science, Department of Technical Physics, Helsinki University of Technology, Finland. President and CEO, Fortum Corporation, 2015–2020. President and CEO, Konecranes Plc, 2005–2015 and Group Executive Vice President 2004–2005. President and CEO, Hackman Oyj, 2002–2004. Managing Partner, Startupfactory 2000–2002. Various executive positions at Nokia 1990–2000. Commissioner, Broadband Commission for Sustainable Development. Member of the Board, Research Institute of the Finnish Economy (ETLA) and Finnish Business and Policy Forum (EVA). International Member of the Academy, Royal Swedish Academy of Engineering Sciences (IVA). Member of the Board, Finnish Athletics Federation. Chairman of the Board, Confederation of Finnish Industries 2019–2020. Member of the Board, East Office of Finnish Industries 2009–2020. Chairman of the Board, Finnish Energy 2016–2018. Nishant Batra b. 1978 Chief Strategy and Technology Officer (CSTO). Group Leadership Team member since 2021. Joined Nokia in 2021. MBA from INSEAD. Master’s degrees in Telecommunications and in Computer Science, Southern Methodist University, Dallas, the United States. Bachelor’s degree in Computer Applications, Devi Ahilya University, Indore, Madhya Pradesh, India. Executive Vice President and Chief Technology Officer, Veoneer Inc. 2018–2021. Prior to Veoneer Inc. held several senior positions at Ericsson 2006–2018 in the United States, Sweden and India. Member of the Board of Directors of Sensys Gatso Group 2020–2022. Ricky Corker b. 1967 Chief Customer Experience Officer (CCXO). Group Leadership Team member since 2019. Joined Nokia in 1993. Bachelor in Communications and Electronic Engineering from the Royal Melbourne Institute of Technology, Australia. President of Customer Operations, Americas, Nokia 2019–2020. Executive Vice President and President of North America, Nokia 2011–2018. Head of Asia Pacific, Nokia Siemens Networks 2009–2011. Head of Asia North Region, Nokia Siemens Networks 2008–2009. Head of Hutchison Global Customer Business Team, Nokia Siemens Networks 2007–2008. Vice President Asia Pacific, Nokia Networks 2005–2007. Lead Sales Director Asia Pacific, Nokia Networks 2004–2005. Account Director Telstra, Nokia Networks 2002–2003. Account Director Vodafone Australia and New Zealand, and Sales Director Vodafone Asia Pacific Customer Business Team, Nokia Networks 2001–2002. Commercial Director Global Accounts British Telecom, Nokia Networks 2001. Senior sales and marketing positions at Nokia 1993–2001. Federico Guillén b. 1963 President of Network Infrastructure. Group Leadership Team member since 2016. Joined Nokia in 2016. Degree in Telecommunications Engineering, ETSIT at Universidad Politécnica de Madrid, Spain. Master’s degree in Switching & Communication Architectures, ETSIT at Universidad Politécnica de Madrid, Spain. Master’s Degree in International Management, ESC Lyon and Alcatel, France. President of Customer Operations, Europe, Middle East & Africa and Asia Pacific, Nokia 2018–2020. President of Fixed Networks, Nokia 2016–2018. President of Fixed Networks, Alcatel-Lucent 2013–2016. President and Chief Senior Officer of Alcatel-Lucent Spain and Global Account Manager Telefónica, Alcatel-Lucent 2009–2013. Vice President Sales of Vertical Market Sales in Western Europe, Alcatel-Lucent 2009. Head of Regional Support Center, Fixed Access Division for South Europe, Middle East & Africa, India and Caribbean & Latin America, Alcatel-Lucent 2007–2009. President and Chief Senior Officer, Alcatel Mexico and Global Account Manager, Telmex 2003–2007. Various R&D, portfolio and sales management positions with Telettra in Spain, and with Alcatel in Spain, Belgium and the United States 1989–2003. Esa Niinimäki Amy Hanlon-Rodemich Jenni Lukander Melissa Schoeb Pekka Lundmark Federico Guillén Ricky Corker Nishant Batra Raghav Sahgal Corporate governance 56 57 NOKIA IN 2022 NOKIA IN 2022

Tommi Uitto b. 1969 President of Mobile Networks. Group Leadership Team member since 2019. Joined Nokia in 1996. Master’s degree in industrial management, Helsinki University of Technology, Finland. Master’s degree in operations management, Michigan Technological University, the United States. Senior Vice President, Global Product Sales, Mobile Networks, Nokia 2016–2018. Senior Vice President, Global Mobile Broadband Sales, Customer Operations, Nokia Networks 2015–2016. Senior Vice President, West Europe, Customer Operations, Nokia Networks 2013–2015. Head of Radio Cluster (Senior Vice President), Mobile Broadband, Nokia Siemens Networks 2012–2013. Head of Global LTE Radio Access Business Line (Vice President) and Quality, Mobile Broadband Nokia Siemens Networks, 2011–2012. Head of Product Management, Network Systems, Nokia Siemens Networks 2010. Head of Product Management, Radio Access, Nokia Siemens Networks 2009. Head of WCDMA/ HSPA and Radio Platforms Product Management, Nokia Siemens Networks 2008. Head of WCDMA/HSPA Product Line Management, Nokia Siemens Networks 2007. General Manager, Radio Controller Product Management Nokia Networks, 2005–2007. Director, Sales & Marketing (Lead Sales Director), France Telecom/Orange Nokia Networks 2002–2005. Operations Director, Northeast Europe, Central & Eastern Europe and Middle East, Nokia Networks 1999–2002. Risk management, internal control and internal audit functions at Nokia Main features of risk management systems We have a systematic and structured approach to risk management. Key risks and opportunities are primarily identified against business targets either in business operations or as an integral part of strategy and financial planning. Risk management covers strategic, operational, financial, compliance and hazard risks. Key risks and opportunities are analyzed, managed and monitored as part of business performance management. The principles documented in the Nokia Enterprise Risk Management Policy, which is approved by the Audit Committee of the Board, require risk management and its elements to be integrated into key processes. One of the core principles is that the business or function head is also the risk owner, although all employees are responsible for identifying, analyzing and managing risks, as appropriate, given their roles and duties. Our overall risk management concept is based on managing the key risks that would prevent us from meeting our objectives, rather than focusing on eliminating all risks. In addition to the principles defined in the Nokia Enterprise Risk Management Policy, other key policies reflect implementation of specific aspects of risk management. Overseeing risk is an integral part of the Board’s deliberations. Key risks and opportunities are reviewed by the Group Leadership Team and the Board in order to create visibility on business risks as well as to enable prioritization of risk management activities. The Board’s Audit Committee is responsible for, among other matters, risk management relating to the financial reporting process and assisting the Board’s oversight of the risk management function. The Board’s role in overseeing risk includes risk analysis and assessment in connection with financial, strategy and business reviews, updates and decision-making proposals. Description of internal control procedures in relation to the financial reporting process The management is responsible for establishing and maintaining adequate internal control over Nokia’s financial reporting. Our internal control over financial reporting is designed to provide reasonable assurance to the management and the Board regarding the reliability of financial reporting and the preparation and fair presentation of published financial statements. The management conducts a yearly assessment of Nokia’s internal controls over financial reporting in accordance with the Committee of Sponsoring Organizations framework (the “COSO framework”, 2013) and the Control Objectives for Information and Related Technology (COBIT) framework of internal controls. The assessment is performed based on a top-down risk assessment of our financial statements covering significant accounts, processes and locations, corporate-level controls and information systems’ general controls. As part of its assessment, the management has documented: ■ the corporate-level controls, which create the “tone from the top” containing the Nokia values and Code of Conduct and which provide discipline and structure to decision-making processes and ways of working. Selected items from our operational mode and governance principles are separately documented as corporate-level controls; ■ the significant processes: (i) give a complete end-to-end view of all financial processes; (ii) identify key control points; (iii) identify involved organizations; (iv) ensure coverage for important accounts and financial statement assertions; and (v) enable internal control management within Nokia; ■ the control activities, which consist of policies and procedures to ensure the management’s directives are carried out and the related documentation is stored according to our document retention practices and local statutory requirements; and ■ the information systems’ general controls to ensure that sufficient IT general controls, including change management, system development and computer operations, as well as access and authorizations, are in place. Further, the management has also: ■ assessed the design of the controls in place aimed at mitigating the financial reporting risks; ■ tested operating effectiveness of all key controls; and ■ evaluated all noted deficiencies in internal controls over financial reporting in the interim and as of year-end. In 2022, Nokia has followed the procedures as described above and has reported on the progress and assessments to the management and to the Audit Committee of the Board on a quarterly basis. Description of the organization of the internal audit function We also have an internal audit function that examines and evaluates the adequacy and effectiveness of our system of internal control. Internal audit reports to the Audit Committee of the Board. The head of the internal audit function has direct access to the Audit Committee, without involvement of the management. The internal audit staffing levels and annual budget are approved by the Audit Committee. All authority of the internal audit function is derived from the Board. The internal audit aligns to the business by business group and function. Annually, an internal audit plan is developed with input from the management, taking into account key business risks and external factors. This plan is approved by the Audit Committee. Audits are completed across the business focusing on site level, customer level, business project level, IT system implementation, IT security, operations activities or at a Group function level. The results of each audit are reported to the management identifying issues, financial impact, if any, and the correcting actions to be completed. Quarterly, the internal audit function communicates the progress of the internal audit plan completion, including the results of the closed audits, to the Audit Committee. Internal audit also works closely with our Ethics and Compliance office to review any financial concerns brought to light from various channels and, where relevant, works with Enterprise Risk Management to ensure priority risk areas are reviewed through audits. In 2022, the internal audit plan was materially completed. Due to some continued COVID-19 impacts, a small number of audits had to be rescheduled to 2023. The results of all completed reviews, as well as the rescheduling to 2023 were reported to management and to the Audit Committee. Related party transactions We determine and monitor related parties in accordance with the International Accounting Standards (IAS 24, Related Party Disclosures) and other applicable regulations including the applicable U.S. securities laws. We maintain information on our related parties as well as monitor and assess related party transactions. As a main principle, all transactions should be conducted at arm’s-length and as part of the ordinary course of business. In exceptional cases where these principles would be deviated from, Nokia would set up a separate process to determine the related parties in question and to seek relevant approvals in accordance with internal guidelines and applicable regulations. Marco Wirén b. 1966 Chief Financial Officer (CFO). Group Leadership Team member since 2020. Joined Nokia in 2020. Master’s degree in Business Administration, University of Uppsala, Sweden. Studies in management and strategic leadership, including at Duke Business School, the United States; IMD, Switzerland and Stockholm School of Economics, Sweden. President, Wärtsilä Energy and Executive Vice President, Wärtsilä Group 2018–2020. Executive Vice President and CFO, Wärtsilä Group 2013–2018. Executive Vice President and CFO, SSAB Group 2008–2013. Vice President, Business Control, SSAB Group 2007–2008. CFO, Eltel Networks 2006–2007. Vice President of Business development, Eltel Networks 2004–2005. Head of Service Division, Eltel Networks 2003–2004. Vice President, Corporate Development, Eltel Networks 2002–2003. Vice President, Strategy & Business Development, NCC Group 1999–2002. Head of Strategic Planning, NCC Group 1998–1999. Group Controller, NCC Group 1996–1998. Vice Chair of the Board of Directors of Neste Corporation 2019–2023 and member of the Board of Directors of Neste Corporation 2015–2023. Summary of changes in the Group Leadership Team in 2022 and thereafter The following members stepped down from the Group Leadership Team: ■ Stephanie Werner-Dietz; Chief People Officer, as of 31 August 2022; and ■ Nassib Abou-Khalil, Chief Legal Officer, as of 6 October 2022. The Group Leadership Team was complemented with two new appointments: ■ Amy Hanlon-Rodemich, Chief People Officer, effective as of 24 October 2022; and ■ Esa Niinimäki, Chief Legal Officer, effective as of 25 January 2023. Marco Wirén Tommi Uitto Corporate governance statement continued Corporate governance 58 59 NOKIA IN 2022 NOKIA IN 2022

Main procedures relating to insider administration Our insider administration is organized according to the applicable European Union and Finnish laws and regulations as well as applicable U.S. securities laws and regulations. In addition, the Board of Directors has approved the Nokia Insider Policy, which sets out Nokia-wide rules and practices to ensure full compliance with applicable rules and that inside information is recognized and treated in an appropriate manner and with the highest integrity. The Nokia Insider Policy is applicable to all directors, executives and employees of Nokia. Persons discharging managerial responsibilities Nokia has identified members of the Board of Directors and the Group Leadership Team as persons discharging managerial responsibilities who, along with persons closely associated with them, are required to notify Nokia and the Finnish Financial Supervisory Authority of their transactions with Nokia’s financial instruments. Nokia publishes the transaction notifications. Corporate governance statement continued In addition, according to the Nokia Insider Policy, persons discharging managerial responsibilities are obligated to clear with the Head of Corporate Legal a planned transaction in Nokia’s financial instruments in advance. It is also recommended that trading and other transactions in Nokia’s financial instruments are carried out in times when the information available to the market is as complete as possible. Closed window Persons discharging managerial responsibilities are subject to a closed window period of 30 calendar days preceding the disclosure of Nokia’s quarterly or annual result announcements, as well as the day of the disclosure. During the closed window period, persons discharging managerial responsibilities are prohibited from dealing in Nokia’s financial instruments. Nokia has imposed this closed window period also on separately designated financial reporting persons who are recurrently involved with the preparation of Nokia’s quarterly and annual results announcements. These persons are separately notified of their status as designated financial reporting persons. Insider registers Nokia does not maintain a permanent insider register. Insiders are identified on a case-by-case basis for specific projects and are notified of their insider status. Persons included in a project-specific insider register are prohibited from dealing in Nokia’s financial instruments until the project ends or is made public. Supervision Our insider administration’s responsibilities include internal communications related to insider matters and trading restrictions, setting up and maintaining our insider registers, arranging related trainings as well as organizing and overseeing compliance with the insider rules. Violations of the Nokia Insider Policy must be reported to the Head of Corporate Legal. Nokia employees may also use channels stated in the Nokia Code of Conduct for reporting incidents involving suspected violations of the Nokia Insider Policy. Auditor fees and services Deloitte Oy, based in Helsinki, Finland, served as our auditor for the financial year ended 31 December 2022 and for the financial year ended 31 December 2021. The auditor is elected annually by our shareholders at the Annual General Meeting for the financial year commencing next after the election. On an annual basis, the Audit Committee of the Board prepares a proposal to the shareholders regarding the appointment of the auditor based upon its evaluation of the qualifications and independence of the auditor to be proposed for election. The following table presents fees by type paid to Deloitte’s network of firms for the years ended 31 December: EURm 2022 2021 Audit fees (1) 22.7 22.0 Audit-related fees (2) 0.8 1.9 Tax fees (3) 0.4 0.2 All other fees (4) 0.2 0.1 Total 24.1 24.2 (1) Audit fees consist of fees incurred for the annual audit of the Group’s consolidated financial statements and the statutory financial statements of the Group’s subsidiaries. (2) Audit-related fees consist of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of the Group’s financial statements or that are traditionally performed by the independent auditor, and include consultations concerning financial accounting and reporting standards; advice and assistance in connection with local statutory accounting requirements; due diligence related to mergers and acquisitions; and audit procedures in connection with investigations in the pre-litigation phase and compliance programs. They also include fees billed for other audit services, which are those services that only the independent auditor can reasonably provide, and include the provision of comfort letters and consents in connection with statutory and regulatory filings and the review of documents filed with the SEC and other capital markets or local financial reporting regulatory bodies. (3) Tax fees include fees billed for: (i) services related to tax compliance including preparation and/or review of tax returns, preparation, review and/or filing of various certificates and forms and consultation regarding tax returns and assistance with revenue authority queries; compliance reviews, advice and assistance on other indirect taxes; and transaction cost analysis; (ii) services related to tax audits; (iii) services related to individual compliance (preparation of individual tax returns and registrations for employees (non-executives), assistance with applying visa, residency, work permits and tax status for expatriates); (iv) services related to technical guidance on tax matters; (v) services related to transfer pricing advice and assistance with tax clearances; and (vi) tax consultation and planning (advice on stock-based remuneration, local employer tax laws, social security laws, employment laws and compensation programs and tax implications on short-term international transfers). (4) Other fees include fees billed for Company establishments; liquidations; forensic accounting, data security, other consulting services and reference materials and services. This section sets out our remuneration governance, policies and how they have been implemented within Nokia. It includes our Remuneration Report where we disclose the compensation of our Board members and the President and CEO for 2022 and which will be presented to an advisory vote at the Annual General Meeting 2023. A standalone version is published on a stock exchange release. Other compensation-related information provided alongside the Remuneration Report is not subject to a vote at the Annual General Meeting 2023, but provides added information on the compensation policies applied within Nokia as well as on the compensation of the rest of the Group Leadership Team. We report information applicable to executive compensation in accordance with Finnish regulatory requirements and with requirements set by the U.S. Securities and Exchange Commission that are applicable to us. Highlights ■ While 2021 was a year of reset, with major changes in strategy, operating model, organization design and culture, 2022 was a year of acceleration for Nokia, and the business achieved strong financial results, reflected in a proposal to increase the dividend authorization at the Annual General Meeting 2023. ■ As President and CEO, Pekka Lundmark had no change to his base salary and target compensation in 2022, and his short-term incentive payment of 144% of target reflects Nokia’s strong performance against objectives set by the Board. ■ Pekka Lundmark spent a significant amount of time in North America in 2022, reflecting the importance of the North American market and its home to key enterprise and webscale companies that we partner with. While temporarily based out of Nokia’s California office, Pekka Lundmark met in-person with many key customers in North and South America, built networks within the U.S. technology industry and deepened government relations. ■ The 2020 Performance share plan grants to Pekka Lundmark and other Global Leadership Team (GLT) members were made in the second half of 2020, and accordingly, performance outcomes for the three-year period will be known in the second half of 2023 after the end of the performance period. ■ Reflecting the input from investors, the 2023 metrics for the long-term incentive plan (Performance shares) for Pekka Lundmark and the rest of the GLT will change from 100% absolute total shareholder return (absolute TSR) to a blend of two-thirds absolute TSR and one-third relative total shareholder return (relative TSR) against our comparator group. ■ To bring greater focus to the important ESG topics of carbon emission reduction and gender diversity, the Board has decided that for the 2023 short-term incentive, the ESG weighting will increase from 10% to 20% for the President and CEO, and the rest of the GLT with a corresponding reduction in their strategic objectives. ■ For 2023, as a result of Nokia’s continued growth and strong business performance it was decided by the Board to increase the President and CEO’s base salary by 3.5%, which is lower than Nokia’s 2022 average global salary increase for the general employee population. Word from the Chair of the Personnel Committee of the Board Dear Fellow Shareholder, I am delighted to present this year’s compensation report, in a year where Nokia delivered clear acceleration in results across the business and a broadened customer base through strong growth in Enterprise. Business context As the Letter from our President and CEO sets out in more detail, 2022 was a year when Nokia successfully executed its business strategy and delivered on its commitment of an acceleration in business results. Our continued use in 2022 of a long-term performance metric based on shareholder return ensures that shareholders and executives are aligned for the short- and long-term and there are direct links between executive compensation and shareholder value creation. In 2022, we maintained the compensation approach set by the Remuneration policy approved by shareholders in 2020. The Remuneration Report, and all elements of the compensation delivered in 2022, are fully consistent with the approved policy. For 2023, we will strengthen this alignment with the Performance shares awarded being based on two-thirds absolute TSR and one-third relative TSR, against our established comparator group. The comparator group that we adopted last year has worked well and will be used as the comparator group for the relative TSR calculation in the 2023 Performance shares. During 2023, we will continue to regularly engage with key shareholders to discuss their views on our compensation policies, programs and associated disclosures, and will reflect on their insights when proposing to the Annual General Meeting 2024 the Remuneration Policy and in preparing Nokia’s equity plan for 2024–2026. Compensation Corporate governance 60 61 NOKIA IN 2022 NOKIA IN 2022

Compensation continued Strategy and compensation At the core of Nokia’s philosophy lie two principles: ■ pay for performance and aligning the interests of employees with shareholders; and ■ ensuring that compensation programs and policies support the delivery of the corporate strategy and create long-term sustainable shareholder value. Shareholder outreach We were pleased that the remuneration report received 93% support as part of an advisory vote in the Annual General Meeting in 2022, and that 97% support was received for the revised fees to Directors. During 2022 we also met with 13 of our largest shareholders and several other key stakeholders, discussing a range of issues, primarily focused on ESG and equity topics. These meetings have helped to inform our views and strengthen our belief that ESG measures are one of the core components of our incentive plans and have led to us increasing the proportion of ESG weighting in the annual short-term incentive for the President and CEO and the GLT members to 20%. CEO compensation During 2022, there was no increase to Pekka Lundmark’s base salary and target incentives. ■ Pekka Lundmark’s bonus for 2022 was at 144% of target totaling EUR 2 342 438, reflecting the strong acceleration in Nokia’s overall business performance. ■ The second tranche of Pekka Lundmark’s restricted shares, awarded to him in 2020 in respect of forfeited compensation from his previous employer, vested in October 2022. This tranche totaled 117 467 shares. The third and final tranche is due in 2023 subject to his continued service. For 2023, as a result of Nokia’s continued growth and strong business performance it was decided by the Board to increase Pekka Lundmark’s base salary by 3.5%, which is lower than Nokia’s 2022 average global salary increase for the general employee population. 2022 remuneration outcomes The 2022 short-term incentive outcome for the President and CEO at 144% of overall target reflects Nokia’s strong 2022 performance. The Board is satisfied with both the financial outcome and the progress as measured against our ESG metrics, which is important to Nokia’s future success and sustainability. The 2020 Performance share plan metric is based on share price increase achieved and dividends payable. Awards to the President and CEO and other GLT members were made in the second half of 2020 and accordingly performance outcomes will be known in the second half of 2023 as a result of the 36-month performance period. The incentive range for the 2020 Performance Share plan is not disclosed until after vesting takes place in 2023, in order to safeguard commercially sensitive information. Share ownership requirement Pekka Lundmark significantly exceeds the shareholding requirement with a holding worth more than four times his annual base salary against a requirement of three times. This is a sign of his commitment to and alignment with Nokia’s long-term success. Short- and long-term incentives in 2023 Our 2023 incentive structure for the President and CEO and the rest of the GLT is outlined below. Delivering sustainable value – Long-term incentive Two-thirds Absolute Total Shareholder Return, one-third Relative Total Shareholder Return Focus on increase in share price and payment of the dividend Delivering the next year’s step in the strategic plan – Short-term incentive Economic profit 70% Environmental, social and governance aspects (ESG) 20% Strategic objective 10% Deliver Economic profit Deliver on our responsibilities to reduce carbon emissions and become a more diverse employer Deliver meaningful strategic actions The 2023 Performance shares under the Nokia Long-term Incentive Plan 2021–2023 is based on absolute TSR (as measured by dividend adjusted share price at the end of the performance period) and relative TSR performance (the absolute TSR as measured against our 27 comparator companies) over the life of the three-year plan from the date of the award. The President and CEO, and the rest of the GLT will continue to receive Performance shares as the main form of their long-term incentives. Our compensation approach and structure continues to play a key role in supporting Nokia’s business strategy and sustainable share price growth over time. In the Remuneration Report, we also show a comparison of the development of compensation for the Board members and the President and CEO, against average employee remuneration and Nokia’s financial development over the last five years. The comparison continues to show a clear link between President and CEO pay and Company performance. I will be stepping down from the Nokia Board effective in April at the 2023 Annual General Meeting. It has been an honor to serve as the Chair of the Personnel Committee during a period in which we increased our engagement with investors and moved to a compensation program that is better aligned with the investor, stakeholder and management interests, introduced incentives to drive ESG outcomes, and improved our disclosures to Investors. In my more than 10 years on the Nokia Board, I have never felt better about Nokia’s future. Bruce Brown Chair of the Personnel Committee Remuneration Policy Nokia Corporation’s Remuneration Policy was supported at the Annual General Meeting 2020 receiving 86% of votes in favor. This policy remained in force and unchanged during 2022. The information below is provided as a summary for ease of reference. In addition to applying the Remuneration Policy to our President and CEO, the principles of our policy extend to the Group Leadership Team. This includes caps to equity award amounts and provisions related to clawback. The Board regularly monitors the effectiveness of the measures used in our incentive plans to ensure that they align with and drive the strategy of the Company. Remuneration summary for the Board of Directors The Board’s Corporate Governance and Nomination Committee periodically reviews the remuneration for the Chair and members of the Board against companies of similar size and complexity. The objective of the Corporate Governance and Nomination Committee is to enable Nokia to compete for the top-of-the-class Board competence in order to maximize the value creation for the shareholders. The Committee’s aim is to ensure that the Company has an efficient Board comprised of international professionals representing a diverse and relevant mix of skills, experience, background and other personal qualities in line with the diversity principles established by the Board. Competitive Board remuneration contributes to the achievement of this target. The structure of the Board remuneration for the current term of the Board that began at the Annual General Meeting held on 5 April 2022 and ends at the close of the Annual General Meeting in 2023 is set out in the table below. Fees Fees consist of annual fees and meeting fees. Approximately 40% of the annual fee is paid in Nokia shares purchased from the market on behalf of the Board members or alternatively delivered as treasury shares held by the Company. The balance is paid in cash, most of which is typically used to cover taxes arising from the paid remuneration. Meeting fees are paid in cash. No meeting fees and no additional annual fees based on service in any of the Board Committees are paid to the Chair of the Board. Incentives Non-executive directors are not eligible to participate in any Nokia incentive plans and do not receive performance shares, restricted shares or any other equity-based or other form of variable compensation for their duties as members of the Board. Pensions Non-executive directors do not participate in any Nokia pension plans. Share ownership requirement Members of the Board shall normally retain until the end of their directorship such number of shares that corresponds to the number of shares they have received as Board remuneration during their first three years of service in the Board (the net amount received after deducting those shares needed to offset any costs relating to the acquisition of the shares, including taxes). Other Directors are compensated for travel and accommodation expenses as well as other costs directly related to Board and Committee work. This compensation is paid in cash. Remuneration for the term that began at the Annual General Meeting held on 5 April 2022 and ends at the close of the Annual General Meeting in 2023 consisted of the following fees. Annual fee (1) EUR Chair 440 000 Vice Chair 195 000 Member 170 000 Chair of Audit Committee 30 000 Member of Audit Committee 15 000 Chair of Personnel Committee 30 000 Member of Personnel Committee 15 000 Chair of Technology Committee 20 000 Member of Technology Committee 10 000 Meeting fee (2) EUR Meeting requiring intercontinental travel 5 000 Meeting requiring continental travel 2 000 (1) The fees payable to the Committee Chairs and members were not paid to the Chair of the Board for her service in any of the Board Committees. (2) Paid for a maximum of seven meetings per term. Was not paid to the Chair of the Board. Proposals of the Board of Directors to the Annual General Meeting 2023 were published on 26 January 2023. To ensure the competitiveness of the Board remuneration and reflecting the fee development in Nokia’s global peer group, the Corporate Governance and Nomination Committee has resolved to recommend to the Board that the annual fees of Board members, save for the Chair of the Board, be proposed to be increased by EUR 15 000. Other remuneration payable to the Board and all Committee members would remain at an unchanged level. Consequently, on the recommendation of the Board’s Corporate Governance and Nomination Committee and in line with Nokia’s Remuneration Policy, the Board of Directors proposes to the Annual General Meeting 2023 that the annual fees payable for a term ending at the close of the next Annual General Meeting be as follows: EUR 440 000 for the Chair of the Board, EUR 210 000 for the Vice Chair of the Board, EUR 185 000 for each member of the Board, EUR 30 000 each for the Chairs of the Audit Committee and the Personnel Committee and EUR 20 000 for the Chair of the Technology Committee as an additional annual fee, EUR 15 000 for each member of the Audit Committee and Personnel Committee and EUR 10 000 for each member of the Technology Committee as an additional annual fee. Further, the additional annual fees are paid to all members of the above-mentioned Committees, including the Board Chair. In order to align the interests of the Board members with those of the shareholders, it is also proposed that, in line with the Company’s Corporate Governance Guidelines, approximately 40% of the annual fee be paid in Nokia shares either purchased from the market on behalf of the Board members or alternatively delivered as treasury shares held by the Company. In addition, the Board of Directors proposes that the meeting fees for Board and Board Committee meetings remain at the current level and are paid to all Board members, including the Board Chair. The meeting fees are based on potential travel required between the Board member’s home location and the location of a meeting and paid for a maximum of seven meetings per term as follows: EUR 5 000 per meeting requiring intercontinental travel; and EUR 2 000 per meeting requiring continental travel. Only one meeting fee is paid if the travel entitling to the fee includes several meetings of the Board and its Committees. The Board also proposes that members of the Board of Directors shall be compensated for travel and accommodation expenses as well as other costs directly related to Board and Board Committee work. The meeting fee, travel expenses and other expenses would be paid in cash. Corporate governance 62 63 NOKIA IN 2022 NOKIA IN 2022

Remuneration summary for the President and CEO Element Year ending 31 December 2023 Year ended 31 December 2022 Purpose Operation Opportunity Name Pekka Lundmark Pekka Lundmark Base salary EUR 1 345 500 EUR 1 300 000 Provide competitive base salary to attract and retain individual with the requisite level of knowledge, skills and experience to lead our businesses. Base pay is normally reviewed annually taking into consideration a variety of factors, including, for example, the following: ■ performance of the Company and the individual; ■ remuneration of our external comparator group; ■ changes in individual responsibilities; and ■ employee salary increases across Nokia and in the local market. Pay reviews are set within the context of employee increases and changes within the Nokia peer group. Changes reflect not only improving performance but also improving competence and skills as would be applied to any other employee in Nokia. Short-term incentives Measures: ■ 100% Nokia scorecard – 70% Economic profit – 20% Environment, social and governance – 10% Strategic objectives Measures: ■ 100% Nokia scorecard – 70% Comparable operating profit – 20% Strategic objectives – 10% Environment, social and governance To incentivize and reward performance against delivery of the annual business plan. Short-term incentives are based on performance against single-year targets and normally paid in cash. Targets for the short-term incentives are set at the start of the year, in the context of analyst expectations and the annual plan, selecting measures that align to the delivery of Nokia’s strategy. Achievement is assessed at the end of the year. Short-term incentives are subject to the clawback policy (see below). Target award 125% of base salary Minimum 0% of base salary Maximum 281.25% of base salary Long-term incentives (Performance Shares) Target award 200% of base salary (EUR 2 691 000) Minimum 0% of base salary Maximum 400% of base salary (1) Metrics: 2/3rds Absolute Total Shareholder return 1/3rd Relative Total Shareholder Return Target award 200% of base salary (EUR 2 600 000) Minimum 0% of base salary Maximum 400% of base salary (1) Metric: Absolute Total Shareholder Return To reward for delivery of sustainable long-term performance, align the President and CEO’s interests with those of shareholders and aid retention. Long-term incentive awards are normally made in performance shares and paid for performance against longer-term targets. Targets are set in the context of the Nokia long-term plans and analyst forecasts ensuring that they are considered both demanding and motivational. Long-term incentives are subject to the clawback policy (see below). Target award 200% of base salary Minimum 0% of base salary Maximum 400% of base salary (1) The Board’s Personnel Committee retains discretion to make awards up to twice that level in exceptional circumstances such as for example upon recruitment, significant change in responsibilities, significant strategic change or other similar events. The use of discretion would be explained at the time. Pension Contribution to the mandatory TyEL pension plan in Finland. Contribution to the mandatory TyEL pension plan in Finland. To provide for retirement with a level of certainty. Retirement age is defined and pensions are provided in line with local country arrangements; in Finland this is the statutory Finnish pension system (Finnish TyEL). Under the TyEL arrangements, base salary, incentives and other taxable benefits are included in the definition of earnings while gains from equity-related plans are not. No supplemental pension arrangements are provided in Finland. Pursuant to Finnish legislation, Nokia is required to make contributions to the Finnish TyEL pension arrangements in respect of the President and CEO. Such payments can be characterized as defined contribution payments. The amount is disclosed in the Remuneration Report. Benefits & mobility Life and critical illness insurance, private medical insurance and company car, phone etc. Life and critical illness insurance, private medical insurance and company car, phone etc. To attract, retain and protect the President and CEO. Benefits are made available as part of the same policy that applies to employees more broadly in the relevant country. Additionally other benefits, such as security provisions, may be provided as appropriate. The value will be the cost to the company. Total Target Remuneration EUR 5 718 375 (1) EUR 5 525 000 (1) Share ownership requirement Requirement: 3 times annual base salary Requirement (value): EUR 4 036 500 Requirement: 3 times annual base salary Requirement (value): EUR 3 900 000 (1) Excluding share price growth and the matching shares under the 2020 and 2021 eLTI co-investment arrangements. Compensation continued Corporate governance 64 65 NOKIA IN 2022 NOKIA IN 2022

Illustration of the earning opportunity for the President and CEO The illustration below shows the pay components of the President and CEO at minimum, target and maximum payout. It includes an annual apportionment of both 2020 and 2021 eLTI co-investment arrangements. Pekka Lundmark chose to invest in both years aligning a considerable proportion of his incentive directly to shareholder return. Earning opportunity of the President and CEO (EURm) Min Target Max Base salary Short-term incentive Long-term incentive Co-investment arrangement 0 5 10 15 20 Share ownership requirement Nokia believes that it is desirable for its executives to own shares in Nokia to align their interests with those of shareholders and to ensure that their decisions are in the long-term interest of the company. The President and CEO is required to own three times his or her annual base salary in Nokia shares and is given a period of five years from appointment to achieve the required level of share ownership. Remuneration on recruitment Our policy on recruitment is to offer a compensation package that is sufficient to attract, retain and motivate the individual with the right skills for the required role. On occasion, we may offer compensation to buy out awards or other lost compensation which the candidate held prior to joining Nokia, but which lapsed upon the candidate leaving their previous employer. Due consideration is given to the potential value and timing of such awards, taking into account any conditions attached to the awards and the likely performance against such conditions. Clawback The President and CEO is subject to a clawback policy where any restatement of financial results may result in the reclaiming of amounts previously paid, which had been based on numbers that have since been materially restated. Any such reclaimed amount, and the period over which payments can be reclaimed, will take into account the circumstances and duration of any misstatement. In the case of unintentional misstatement, payments made within the last three years may be subject to the policy at the discretion of the Personnel Committee. Termination provisions In the event of a termination of employment, any payable compensation is determined in line with legal advice regarding local legislation, country policies, contractual obligations and the rules of the applicable incentive and benefit plans. Current termination provisions of the President and CEO’s service agreement are described in the Remuneration Report. Change of control arrangements, if any, are based on a double trigger structure, which means that both a specified change of control event and termination of the individual’s employment must take place for any change of control-based severance payment to materialize. Compensation continued Please note that the Remuneration Report, applicable to the Board and President and CEO, subject to an advisory vote at the Annual General Meeting 2023, is set out below and is also published on a stock exchange release. Other compensation-related information provided before and after the Remuneration Report is not subject to a vote at the Annual General Meeting 2023, but provides further information on the compensation policies applied within Nokia and the compensation of the Group Leadership Team. Remuneration Report 2022 Introduction This Remuneration Report (the Report) of Nokia Corporation (Nokia or Company) has been approved by the Company’s Board of Directors to be presented to the Annual General Meeting 2023. The resolution of the Annual General Meeting on the Report is advisory. The Report presents the remuneration of the members of the Board of Directors and the President and CEO for the financial year 2022 in accordance with the Finnish Decree of the Ministry of Finance 608/2019, the Finnish Corporate Governance Code of 2020 as well as other applicable Finnish laws and regulations. The members of the Board of Directors and the President and CEO have been remunerated in accordance with our approved Remuneration Policy during the financial year 2022. No temporary or other deviations from the Policy have been made and no clawback provisions have been exercised during the financial year 2022. In 2022, our remuneration structure promoted the Company’s long-term financial success by setting the performance criteria for short- and long-term incentives to support the Company’s short- and long-term goals, as well as through shareholding requirements set for the President and CEO and the Board members. Aligned with Nokia’s pay-for-performance remuneration principle, performance-based compensation was emphasized over fixed base salary. The setting and application of the performance criteria for incentive programs executed the philosophy of pay-for-performance and supported the delivery of the corporate strategy as well as the creation of long-term sustainable shareholder value. The table below compares the development of the remuneration of our Board of Directors, President and CEO, average employee pay and the Company performance. Year Aggregate remuneration of the Board of Directors (EUR) (1) President and CEO actual remuneration (EUR) Average Salaries and Wages (EUR) (3) Net sales (EURm) Total Shareholder Return (Rebased to 100 at 31 Dec 2017) (4) 2018 2 203 000 4 651 009 63 220 22 563 85.92 2019 2 219 000 3 897 625 61 980 23 315 57.48 2020 2 016 000 3 587 781 (2) 65 787 21 852 54.95 2021 1 821 000 4 908 244 70 411 22 202 132.63 2022 2 280 000 4 316 606 74 100 24 911 119.31 (1) Aggregate total remuneration paid to the members of the Board during the financial year as annual fee and meeting fee, as applicable, and as approved by general meetings of shareholders. The value depends on the number of members elected to the Board for each term as well as on the composition of the Board committees and travel required. (2) The President and CEO actual remuneration represents the combined total in 2020, when Pekka Lundmark replaced Rajeev Suri. (3 Average salaries and wages are based on average employee numbers and their total salaries and wages as reported in the Company’s financial statements. (4) Total shareholder return on last trading day of the previous year. We also present this data graphically: Comparative data (rebased year end 2017 = 100) 0 50% 100% 150% Remuneration of the Board of Directors President and CEO actual remuneration Average salaries and wages Net sales Total Shareholder Return 2022 2021 2020 2019 2018 2017 Corporate governance 66 67 NOKIA IN 2022 NOKIA IN 2022

While the graph reflects the euro values paid during each financial year, in practice the Board members’ remuneration closely aligns with the performance of the Company and the total shareholder return. Approximately 40% of the Board members’ annual fees are paid in Nokia shares purchased from the market on their behalf. The rest of the annual fee was paid in cash, most of which is typically used to cover taxes arising from the remuneration. All members of the Board were non-executive during the financial years 2018–2022. The pay-for-performance remuneration principle applied to the President and CEO as well as the shareholding requirement of the President and CEO and the Board members, as applicable, contribute to an alignment of interests with shareholders, while also promoting and incentivizing decisions that are in the long-term interest of the Company. Remuneration of the Board of Directors The shareholders resolve annually on director remuneration at the Annual General Meeting based on a proposal made by the Board of Directors on the recommendation of the Board’s Corporate Governance and Nomination Committee. At the Annual General Meeting held on 5 April 2022 Kari Stadigh stepped down from the Board and the Annual General Meeting resolved to elect 10 members to the Board. The following Board members were re-elected for a term ending at the close of the Annual General Meeting 2023: Sari Baldauf, Bruce Brown, Thomas Dannenfeldt, Jeanette Horan, Edward Kozel, Søren Skou and Carla Smits-Nusteling. Lisa Hook, Thomas Saueressig and Kai Öistämö were elected as new members of the Board for the same term. The aggregate amount of compensation paid to Board members in 2022 equaled EUR 2 280 000 of which EUR 2 205 000 consisted of annual fees and the rest of meeting fees. In accordance with the resolution by the Annual General Meeting 2022, approximately 40% of the annual fee from Board and Board Committee work was paid in Nokia shares purchased from the market on behalf of the Board members following the Annual General Meeting. The directors shall retain until the end of their directorship such number of shares that corresponds to the number of shares they have received as Board remuneration during their first three years of service on the Board. The rest of the annual fee was paid in cash. All meeting fees were also paid in cash. It is the Company’s policy that the non-executive members of the Board do not participate in any of Nokia’s equity programs and do not receive performance shares, restricted shares, or any other equity-based or other variable compensation for their duties as Board members. No such variable compensation was paid since all persons acting as Board members during the financial year 2022 were non-executive. The following table outlines the total annual compensation paid in 2022 to the members of the Board for their services, as resolved by the shareholders at the Annual General Meeting. Annual fee (EUR) Meeting fees (EUR) (1) Total remuneration paid (EUR) 60% of annual fees and all meeting fees paid in cash (EUR) 40% of annual fees paid in shares (EUR) Number of Shares approximately 40% of the annual fee Sari Baldauf (Chair) 440 000 – 440 000 264 000 176 000 36 217 Søren Skou (Vice Chair) 210 000 9 000 219 000 135 000 84 000 17 285 Bruce Brown 210 000 17 000 227 000 143 000 84 000 17 285 Thomas Dannenfeldt 200 000 9 000 209 000 129 000 80 000 16 462 Lisa Hook 185 000 7 000 192 000 118 000 74 000 15 227 Jeanette Horan 195 000 – 195 000 117 000 78 000 16 050 Edward Kozel 205 000 12 000 217 000 135 000 82 000 16 874 Thomas Saueressig 180 000 7 000 187 000 115 000 72 000 14 816 Carla Smits-Nusteling 200 000 9 000 209 000 129 000 80 000 16 462 Kari Stadigh (until 5 April 2022) (2) – – – – – – Kai Öistämö 180 000 5 000 185 000 113 000 72 000 14 816 Total 2 205 000 75 000 2 280 000 1 398 000 882 000 181 494 (1) Meeting fees include all meeting fees paid for the term that ended at the Annual General Meeting held on 5 April 2022 and meeting fees accrued and paid in 2022 for the term that began at the same meeting. (2) Stepped down at the Annual General Meeting on 5 April 2022 and did not receive any annual or meeting fees in 2022. Compensation continued Remuneration of the President and CEO The following table shows the actual remuneration received by Pekka Lundmark in 2022 and 2021. The long-term incentive figures relate to the release of restricted shares granted on joining in respect of forfeited shares from his previous employer. EUR 2022 Pay mix (1) 2021 Pay mix (1) Salary 1 300 000 31% 1 300 000 27% Short-term incentive (2) 2 342 438 56% 2 975 781 61% Long-term incentive 560 318 13% 596 732 12% Other compensation (3) 113 850 35 731 Total 4 316 606 4 908 244 (1) Pay mix reflects the proportions of base salary, short-term incentive and long-term incentive of total compensation, excluding other compensation. (2) Short-term incentives represent amounts earned in respect of the financial year, but that are paid in April of the following year. (3) Other compensation includes benefits such as telephone, car, driver, tax compliance support, and medical insurance. Pursuant to Finnish legislation, Nokia is required to make contributions to the Finnish TyEL pension arrangements in respect of the President and CEO. Such payments can be characterized as defined contribution payments. In 2022, payments to the Finnish state pension system equaled EUR 475 384 for Pekka Lundmark in respect of his service as President and CEO (EUR 314 457 for Pekka Lundmark in 2021). No supplementary pension arrangements were offered. Short-term incentive The 2022 short-term incentive framework for the President and CEO was based on financial, strategic and ESG objectives. Achievement against the 2022 targets was as follows: Metric Weight Target Achievement Comparable Operating Profit (1) 70% 2 885 EURm 156% Diversity 5% Diversity of new hires 60% Emissions Scopes 1,2 and 3 5% 293 955 tCO 2 e (Scopes 1 and 2) Balanced scorecard (Scope 3) 151% Strategic Objectives (2) 20% Individual objectives 122% (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. (2) The outcome is driven by growth in Enterprise sales and projects that are important to Nokia’s future. Accordingly, the short-term incentive of Pekka Lundmark as the President and CEO equaled EUR 2 342 438 or 144% of the target award. Long-term incentives In 2022, Pekka Lundmark was awarded the following Performance share awards under Nokia’s Long-term Incentive Plan 2021–2023. The performance condition for the 2022 Performance shares is based on absolute total shareholder return and the actual achievement will be detailed following the end of the three-year performance period. Performance share awards (1) Units awarded Grant date fair value (EUR) Grant date Vesting Awarded as regular performance share award 543 900 2 409 477 6 July 2022 Q3 2025 (1) The 2022 Performance shares have a three-year performance period based on absolute total shareholder return. The maximum payout is 200% subject to maximum performance against the performance criterion. Vesting is subject to continued employment. Vesting for the President and CEO during the year The second tranche of Pekka Lundmark’s 2020 restricted share award, made to him on joining in recognition of forfeited awards from his previous employer, vested on 1 October 2022, releasing 117 467 shares to the value of EUR 560 318. Share awards vesting during the year Units awarded Target Achievement Units vesting 2020 Restricted Share Award Tranche 2 117 467 N/A N/A 117 467 Corporate governance 68 69 NOKIA IN 2022 NOKIA IN 2022

Share ownership and unvested share awards Our share ownership policy requires that the President and CEO holds a minimum of three times his or her annual base salary in Nokia shares in order to ensure alignment with shareholder interests over the long term. Pekka Lundmark significantly exceeds this requirement with a holding of more than four times base salary, well within the five-year allotted period. Pekka Lundmark’s unvested shares include his 2020 and 2021 eLTI awards, the last tranche of his buy-out Restricted share award as well as any Performance share grants made to him since joining Nokia. The payout of his 2020 eLTI and Performance shares will not be known until later in 2023. The eLTI is a selective arrangement offered to senior leaders in 2021 and to the president and CEO in 2020. In return for the purchase and continued holding of Nokia shares, a 2:1 match of Nokia Performance shares was made which vest after three years subject to absolute total shareholder return and continued employment. The maximum payout is 200% subject to maximum performance against the performance criterion. Pekka Lundmark Units Value (1) (EUR) Beneficially owned shares as of 31 December 2022 1 289 304 5 578 818 Unvested shares under outstanding Nokia equity plans (2) 4 455 440 19 278 689 Total 5 744 744 24 857 507 (1) The values are based on the closing price of a Nokia share of EUR 4.327 on Nasdaq Helsinki on 30 December 2022. (2) The number of units represents the number of unvested awards as of 31 December 2022. President and CEO’s termination provisions are as follows: Termination by Reason Notice Compensation Nokia Cause None The President and CEO is entitled to no additional compensation and all unvested equity awards would be forfeited after termination. Nokia Reasons other than cause Up to 12 months The President and CEO is entitled to a severance payment equaling up to 12 months of compensation (including annual base salary, benefits, and target incentive) and unvested equity awards would be forfeited after termination. President and CEO Any reason 12 months The President and CEO may terminate his service agreement at any time with 12 months’ prior notice. The President and CEO would either continue to receive salary and benefits during the notice period or, at Nokia’s discretion, a lump sum of equivalent value. Additionally, the President and CEO would be entitled to any short- or long-term incentives that would normally vest during the notice period. Any unvested equity awards would be forfeited after termination. President and CEO Nokia’s material breach of the service agreement Up to 12 months In the event that the President and CEO terminates his service agreement based on a final arbitration award demonstrating Nokia’s material breach of the service agreement, he is entitled to a severance payment equaling up to 12 months of compensation (including annual base salary, benefits and target incentive). Any unvested equity awards would be forfeited after termination. The President and CEO is subject to a 12-month non-competition and non-solicit obligation that applies after the termination of the service agreement or the date when he is released from his obligations and responsibilities, whichever occurs earlier. Compensation continued Remuneration governance We manage our remuneration through clearly defined processes, with well-defined governance principles, ensuring that no individual is involved in the decision-making related to their own remuneration and that there is appropriate oversight of any compensation decision. Remuneration of the Board is annually presented to shareholders for approval at the Annual General Meeting and the remuneration of the President and CEO is approved by the Board. The Board submits its proposal to the Annual General Meeting on the recommendation of the Board’s Corporate Governance and Nomination Committee, which actively considers and evaluates the appropriate level and structure of directors’ remuneration. Shareholders also authorize the Board to resolve to issue shares, for example to settle Nokia’s equity-based incentive plans, based on the proposal of the Board. The Board of Directors approves, and the independent members of the Board confirm, the compensation of the President and CEO, upon recommendation of the Personnel Committee. The Personnel Committee consults regularly with the President and CEO and the Chief People Officer though they are not present when their own compensation is reviewed or discussed. This enables the Personnel Committee to be mindful of employee pay and conditions across the broader employee population. The Committee has the power, in its sole discretion, to retain compensation consultants to assist the Personnel Committee in evaluating executive compensation. The Personnel Committee Chair regularly engages with shareholders to discuss their views on our compensation policies, programs and associated disclosures and reflect on their feedback. These insights have informed an expansion of the ESG weighting in the short-term incentive and the introduction of relative TSR as a metric in the 2023 Performance shares. Work of the Personnel Committee The Personnel Committee convened five times during 2022 with a general theme for each meeting. O C T N O V D E C J A N F E B M A R S E P A U G J U L J U N M A Y A P R 1 3 4 2 1 Approvals & reporting 2 Philosophy & structure 3 Long-term direction & market review 4 Planning February ■ Incentive targets and objectives ■ Nokia Equity Program ■ Culture evolution ■ Prior year’s incentive results ■ President and CEO remuneration May ■ Culture update ■ Shareholder feedback in the AGM ■ GLT compensation review ■ Policy and structure review July ■ People risks and opportunities ■ LTI Development ■ Status of incentive payouts and ESG goal achievement September ■ Succession ■ 2023 Incentive framework ■ Analytics and demographics ■ Equity plan direction December ■ Personnel Committee charter review ■ 2023 Incentive metrics ■ Shareholder feedback ahead of 2023 proxy season ■ Remuneration Report for 2022 Corporate governance 70 71 NOKIA IN 2022 NOKIA IN 2022

Unvested equity awards held by the Nokia Group Leadership Team, including the President and CEO The following table sets forth the potential aggregate ownership interest through the holding of equity-based long-term incentives of the Group Leadership Team in office, including the President and CEO, as of 31 December 2022: Shares receivable through performance shares at grant Shares receivable through performance shares at maximum (4) Shares receivable through restricted shares Number of equity awards held by the Group Leadership Team (1) 10 191 488 20 382 976 357 090 % of the outstanding shares (2) 0.18% 0.36% 0.01% % of the total outstanding equity incentives (per instrument) (3) 16.05% 16.05% 0.66% (1) Includes the 10 members of the Group Leadership Team in office at 31 December 2022. (2) The percentages are calculated in relation to the outstanding number of shares and total voting rights of Nokia at 31 December 2022, excluding shares held by the Nokia Group. No member of the Group Leadership Team owns more than 1% of the outstanding Nokia shares. (3) The percentages are calculated in relation to the total outstanding equity incentives per instrument. (4) At maximum performance, under the performance share plans outstanding at 31 December 2022, the payout would be 200% and the table reflects this potential maximum payout. Review of our incentive plans Each year we monitor the performance of our incentive plans against the targets for the plan, total shareholder return and the impact that the plans have on total compensation compared with market peers. Target setting Targets for the short-term incentives are set annually at or before the start of the year, balancing the need to deliver value with the need to motivate and drive performance of the Group Leadership Team. Targets are selected from a set of strategic metrics that align with driving sustainable value for shareholders and are set in the context of market expectations and analyst consensus forecasts. Targets for our long-term incentive plans are set in a similar context. The long-term incentive targets are set at the start of the performance period and locked in for the life of the plan. Short-term incentives In 2022, short-term incentive targets and achievements were based on a mix of metrics as shown below. Targets were measured either at a Nokia Group level or, alternatively, at a mix of Nokia Group and business group level for business group presidents. ■ Comparable operating profit of Nokia* ■ Segment operating profit for the relevant business group ■ Role related strategic objectives ■ ESG (carbon emissions and diversity) Those Group Leadership Team members not leading a business group will have the equivalent proportion of their incentive based on Nokia’s comparable operating profit*. Long-term incentives We annually review compensation against key metrics such as total shareholder return and share price to validate the effectiveness of our equity plans. The 2020 Performance share plan is due to vest in the second half of 2023 and accordingly the performance outcome for the three-year period will then be known. The metric for the performance shares awarded in 2022 (under the Nokia LTI Plan 2021–2023) was based on total shareholder return in a similar manner to the 2020 and 2021 awards. This reflects our commitment to driving the best direct, long-term results and closely aligns plan participants with the interests of shareholders. Awards to senior executives and leaders were made in July. Awards are not due to vest until a corresponding date three years later in 2025. The performance conditions remained constant for all performance share awards made in 2022. The President and CEO The President and CEO has an active role in the compensation governance and performance management processes for the Group Leadership Team and the wider employee population at Nokia. The President and CEO is not a member of the Personnel Committee and does not vote at Personnel Committee meetings, nor does he participate in any conversations regarding his own compensation. Advisors The Personnel Committee engaged Willis Towers Watson, an independent external consultant, to assist in the review and determination of executive compensation and program design and provide insight into market trends and regulatory developments. Group Leadership Team At the end of 2022, the Group Leadership Team consisted of 10 persons split between Finland, other European countries, Singapore and the United States. For information regarding the current Group Leadership Team composition, refer to the Corporate Governance Statement. Name Position in 2022 Appointment date Pekka Lundmark President and CEO 1 August 2020 Nishant Batra Chief Strategy and Technology Officer 18 January 2021 Ricky Corker Chief Customer Experience Officer 1 January 2019 Federico Guillén President of Network Infrastructure 8 January 2016 Amy Hanlon-Rodemich Chief People Officer 24 October 2022 Jenni Lukander President of Nokia Technologies 1 August 2019 Raghav Sahgal President of Cloud and Network Services 1 June 2020 Melissa Schoeb Chief Corporate Affairs Officer 12 April 2021 Tommi Uitto President of Mobile Networks 31 January 2019 Marco Wirén Chief Financial Officer 1 September 2020 The remuneration of the members of the Group Leadership Team consists of base salary, other benefits, and short- and long-term incentives. Short-term incentive plans are based on rewarding the delivery of business performance utilizing certain, or all, of the following metrics as appropriate to the member’s role: comparable operating profit of Nokia*, segment operating profit for the relevant business group, diversity and carbon emission targets and defined strategic objectives. Executives on the Group Leadership Team are subject to the same remuneration policy framework as the President and CEO. This includes being subject to clawback and shareholding requirements. The shareholding requirement for members of the Group Leadership Team is two times their base salary. Remuneration of the Group Leadership Team in 2022 Remuneration of the Group Leadership Team (excluding the President and CEO) in 2021 and 2022, in the aggregate, was as follows: 2022 EURm (1) 2021 EURm (1) Salary, Short-term incentives and other compensation (2) 13.6 16.0 Long-term incentives (3) 7.0 2.2 Total 20.6 18.2 (1) The values represent each member’s time on the Group Leadership Team. (2) Short-term incentives represent amounts earned in respect of 2022 performance. Other compensation includes mobility related payments, local benefits and pension costs. (3) The amounts represent the equity awards that vested in 2022 and 2021. The members of the Group Leadership Team (excluding the President and CEO) were awarded the following equity awards under the Nokia equity program in 2022: Award Units awarded (1) Grant date fair value (EUR) Grant date Vesting Performance share award (2) 1 610 900 7 148 486 6 July and 15 December 2022 Q3 and Q4 2025 Restricted share award (3) 58 900 260 927 6 July 2022 Q3 2023 (1) Includes units awarded to persons who were Group Leadership Team members during 2022. (2) The 2022 Performance shares have a three-year performance period based on absolute total shareholder return. The maximum payout is 200% subject to maximum performance against the performance criterion. Vesting is subject to continued employment. (3) Vesting of each tranche of the restricted share awards is conditional on continued employment. Compensation continued * 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. Corporate governance 72 73 NOKIA IN 2022 NOKIA IN 2022

Comparator companies This consists of the following 27 companies. ABB IBM Adobe Infineon Technologies Airbus Juniper Networks ASML Kone Atos Motorola Solutions BAE Systems NXP Semiconductors Capgemini Oracle Ciena Philips Cisco Systems SAP Corning Siemens Healthineers Dell Technologies VMware Ericsson Vodafone Group Hewlett Packard Enterprise Wärtsilä HP Nokia Long-Term Incentive Plan and Employee Share Purchase Plan 2021–2023 The Long-term Incentive Plan (LTI Plan) intends to effectively contribute to the long-term value creation and sustainability of the Company and align the interests of the executives and employees with those of Nokia’s shareholders. Nokia’s Long-term Incentive Plan for 2021–2023 is a key tool which supports these objectives. Under the LTI Plan the Company may grant eligible executives and other employees awards in the form of both Performance shares and Restricted shares. Awards under the LTI Plan may be granted between the date the plan is approved and 31 December 2023 subject to applicable performance metrics as well as performance and/or restriction periods of up to 36 months depending on the award. Consequently, the restriction periods for the last awards granted under the LTI Plan would end in 2026. Performance metrics as well as weightings and targets for the selected metrics for Performance shares are set by the Board of Directors annually to ensure they continue to support Nokia’s long-term business strategy and financial success. The potential maximum aggregate number of Nokia shares that may be issued based on awards granted under the LTI Plan in 2021, 2022 and 2023 is 350 million. Until the Nokia shares are delivered, the participants will not have any shareholder rights, such as voting or dividend rights associated with the Performance or Restricted shares. If the participant’s employment with Nokia terminates before the vesting date of the award or a part of an award, the individual is not, as a main rule, entitled to settlement based on the plan. The approach for 2023 will be that the majority of the LTI Plan participants receive Restricted shares rather than Performance shares. Executives continue to receive Performance shares as the main form of long-term incentives. The 2023 metrics for Performance shares will change to a blend of two-thirds absolute total shareholder return (absolute TSR) and one-third relative total shareholder return (relative TSR) against our comparator group for the President and CEO, GLT and some senior executives. Other executives will receive a mixture of Performance Shares and Restricted Shares. The Performance shares awarded to other executives (excluding President and CEO, GLT and some senior executives) will be subject to absolute TSR metrics only. All Performance shares vests no earlier than three years from grant. In general, Restricted shares will vest three years from grant (cliff vesting) which will be applicable to executives receiving part of their main long-term incentive in Restricted Shares. In limited cases, predominantly related to extraordinary retention and recruitment and in the U.S., the Company may introduce different vesting periods with tranche vesting. The purpose of the employee share purchase plan (ESPP) is to encourage share ownership within the Nokia employee population, increasing engagement and sense of ownership in the company. Under the ESPP 2021–2023, subject to the Board commencing annual plan cycles, the eligible employees may elect to make contributions from their monthly net salary to purchase Nokia shares at market value on pre-determined dates on a quarterly basis during the applicable plan period. Nokia would deliver one matching share for every two purchased shares that the participant still holds at the end of applicable plan cycle. In addition, the participants may be offered free shares subject to meeting certain conditions related to participation as determined by the Board. The maximum number of shares that can be issued under all plan cycles commencing under the ESPP in 2021, 2022 and 2023 is 35 million. Participants have immediate shareholder rights over all shares purchased from the market. Until the matching or free Nokia shares are delivered, the participants will not have any shareholder rights, such as voting or dividend rights associated with the matching or free shares. Pay for performance Core to our compensation philosophy is a desire to pay for performance. Each year we review overall total shareholder return compared with long-term incentive payouts mapping the performance of the plans against the total shareholder return curve. Share price and total shareholder return vs long-term incentive performance TSR value 0 50% 100% 150% 200% 250% 2015 2016 2018 2019 2020* 2022* 2021* 2017 2014 Long-term incentive plan, as of 31 December 2013 2012 Achieved Overachieved Nokia total shareholder return (“TSR”) * Performance period not yet completed. 86% 46% 29% 57% 53% Nil 100% 100% 25.72% 23.75% Looking at the performance of our long-term incentive plans against total shareholder return, there is a reasonable alignment with the performance of the plans declining as total shareholder return declines. The Board continues to actively monitor the performance of our long-term incentive plans to ensure that they deliver value for shareholders. Compensation continued Corporate governance 74 75 NOKIA IN 2022 NOKIA IN 2022

Business description 78 Board’s review 79 Selected financial data 80 Operating and financial review 81 Results of operations 81 Results of segments 84 Network Infrastructure 84 Mobile Networks 85 Cloud and Network Services 86 Nokia Technologies 87 Group Common and Other 88 Liquidity and capital resources 89 Financial position 89 Cash flow 89 Financial assets and debt 90 Venture fund investments and commitments 90 Treasury policy 90 Foreign exchange impact 91 Sustainability and corporate responsibility 92 Our purpose, strategy and targets 92 Sustainability governance 97 Risk management 98 Environment 99 Industrial digitalization 101 Bridging the digital divide 101 Security and Privacy 102 Responsible business 103 Our People 106 Disclosure under the European Union Taxonomy Regulation 111 Shares and shareholders 116 Share details 116 Shareholders 118 Articles of Association 120 Risk factors 122 Significant subsequent events 125 Key ratios 126 Alternative performance measures 127 Board review Board review 77 NOKIA IN 2022 NOKIA IN 2022 76 77

Business description Board’s review 2022 Nokia Corporation is a public limited liability company incorporated and domiciled in Helsinki, Finland. Nokia Corporation is the parent company (Parent Company or Parent) for all its subsidiaries (Nokia or the Group). At Nokia, we create technology that helps the world act together. We provide mobile, fixed and cloud network solutions that enable critical networks for communication service providers (CSPs), enterprise verticals and hyperscalers. Our portfolio of products, services and licensing opportunities helps accelerate digitalization to address global sustainability, productivity and accessibility challenges. We have customers in more than 100 countries around the world and operations in Europe, the Middle East & Africa, Greater China, North America, Asia-Pacific and Latin America. The shares of Nokia Corporation are listed on the Nasdaq Helsinki Stock Exchange, the New York Stock Exchange and the Euronext Paris Stock Exchange. Business description Board’s review 2022 The year 2022 started with high hopes for global stability after two years of COVID- 19-related disruption. However, the Russian invasion of Ukraine soon unleashed a new wave of global challenges, together with human tragedy and suffering. The war led to an energy crisis, further fueled inflation, challenged global interdependence and increased the risk of recession. Yet Nokia was able to navigate these challenges while capitalizing on sustained demand for connectivity and the megatrend towards digitalization. The Board was pleased to see continued progress with the accelerate phase of Nokia’s reset-accelerate-scale plan, which was demonstrated by the strong financial performance in 2022. Nokia’s ability to remain on track with its strategic plans bodes well for 2023. Investing for continued technology leadership Since the introduction of the three-phase strategy in 2021, Nokia has significantly improved its technology competitiveness and refocused its cost base towards research and development (R&D) to drive long-term differentiation and technology leadership. Our R&D spending reached over EUR 4.5 billion in 2022, as we invest to meet current and future customer needs and position Nokia for broader digitalization opportunities beyond our core business. In 2022, we continued to extend our technology leadership in IP Networks with 800 Gigabit Ethernet (800GE) and we increased shipments of our FP5 chipset-powered solutions and the proportion of 5G deliveries powered by our ReefShark System-on-Chip (SoC) technology. While our four accountable business groups focus on near- to mid-term innovation, our world-renowned industrial research arm Nokia Bell Labs is focused on a longer-time horizon, as it anticipates and shapes technology cycles. In our Technology Vision 2030, updated in September 2022, we outlined that the transition to 6G technology will happen by the end of this decade. This gives rise to new metaverse opportunities clearly differentiated between the consumer, enterprise, and industrial domains. We believe that all three segments promise significant revenue potential for Nokia by 2030, and we are already seeing very solid traction in the Industrial Metaverse with the adoption of digital twins. As these metaverses evolve, and the digital and physical worlds fuse, cybersecurity will become even more critical. Nokia’s aim is to ensure that every generation of communications technology is more secure than the previous one. Nokia is sharing expertise and practical experience with customers and partners and investing increasingly in security testing and technical collaboration. As part of that work, the Board is ensuring Nokia also maintains a continuous focus on its own cybersecurity. Environmental, Social and Governance (ESG) as a competitive advantage Nokia refreshed its ESG strategy with the aim of embedding ESG into decision-making in every part of the business, including product development and making ESG a competitive advantage for the business. At the same time, we try to minimize any potential negative impacts, societal or environmental, including greenhouse gas emissions. The Board’s work in 2022 The Annual General Meeting 2022 took place at Nokia’s headquarters in Espoo on 5 April 2022. Due to the ongoing COVID-19 pandemic at the time, the meeting was held without shareholders and their proxy representatives being present. Despite the meeting setup, we were pleased to see the high engagement level from our owners. Approximately 59 300 shareholders, representing a record number 3.1 billion shares and votes, participated in the meeting via advance voting with strong support for the Board’s proposals. The Annual General Meeting 2022 elected 10 members to the Board, including three new members – Lisa Hook, Thomas Saueressig and Kai Öistämö – as we continue to renew the Board’s composition to ensure it has the right mix of skills, experience, tenures and other personal qualities. During 2022, the Board held 18 meetings, of which nine were in person or via video conferencing. In our meetings, the Board followed its annual plan with a focus on the key priorities of the year. At the beginning of the year, the Board paid special attention to geopolitical developments and also decided to restart distributions to our shareholders by proposing a dividend authorization and launching a new share buyback program. Throughout the year, the Board focused on the strategic priorities of Nokia, including growing our CSP business faster than the market, expanding the share of Enterprise business, actively managing our portfolio, securing the business longevity of Nokia Technologies, building new business models, and developing ESG as a competitive advantage. In parallel, the Board focused on the enablers of those priorities: talent, long-term research, digitalization and brand. The four Committees of the Board – Audit, Corporate Governance and Nomination, Personnel and Technology – assisted and supported the Board effectively during the year and held a total of 20 meetings. In particular, ESG matters continued to form an integral part of the Committees’ activities and the Committees monitored environmental and social developments and the company’s related activities in their respective areas of responsibility, such as human capital, ethics, security, energy efficiency, sustainability reporting, and climate and diversity in the management’s incentives. The Corporate Governance and Nomination Committee continued to work on the renewal of the Board composition, the outcome of which is reflected in the Board composition proposed to the 2023 Annual General Meeting, including two new director candidates, Timo Ahopelto and Elizabeth Crain, and an equal split of female and male directors on the Board. Our direction for 2023 With a refreshed strategy in place, Nokia will continue in the accelerate phase of its strategy in 2023: gaining market share, adding new Enterprise customers, and continuing our pursuit of technology leadership wherever we compete. Our margins show the benefits of these priorities so far. In addition, our recent brand refresh will build awareness of Nokia’s position as a B2B technology innovation leader. Due to our confidence in Nokia’s long-term outlook and strong balance sheet position, the Board proposed a dividend authorization of EUR 0.12 per share to the Annual General Meeting 2023. In addition, the Board decided to start in January the second EUR 300 million phase of the EUR 600 million share buyback program. The Board would like to thank all of Nokia’s employees for delivering another year of growth in and for creating a strong foundation to keep delivering in 2023 and beyond. Board review 78 79 NOKIA IN 2022 NOKIA IN 2022

Selected financial data Selected financial data This section includes selected financial and other measures for the Nokia Group as of and for each of the years in the three-year period ended 31 December 2022. The information has been derived from, and should be read in conjunction with, our audited consolidated financial statements prepared in accordance with IFRS. The consolidated financial statements as of 31 December 2022 and 2021 and for the years ended 31 December 2022, 2021 and 2020 are included in this report. For the year ended 31 December 2022 2021 2020 (in EURm, except for percentage and personnel data) From the consolidated income statement Net sales 24 911 22 202 21 852 Operating profit 2 318 2 158 885 % of net sales 9.3% 9.7% 4.0% Profit before tax 2 184 1 926 743 Profit/(loss) for the year from continuing operations 4 210 1 654 (2 513) Profit/(loss) for the year from discontinued operations 49 (9) (3) Profit/(loss) for the year 4 259 1 645 (2 516) From the consolidated statement of financial position Non-current assets 22 677 20 452 17 976 Current assets 20 266 19 597 18 215 Total assets 42 943 40 049 36 191 Capital and reserves attributable to equity holders of the parent 21 333 17 360 12 465 Non-controlling interests 93 102 80 Total equity 21 426 17 462 12 545 Interest-bearing liabilities (1) 4 477 4 653 5 576 Lease liabilities (1) 1 042 1 009 910 Provisions (1) 1 435 1 569 1 532 Other liabilities (1) 14 563 15 356 15 628 Total shareholders’ equity and liabilities 42 943 40 049 36 191 Other information Research and development expenses (4 550) (4 214) (4 087) % of net sales (18.3)% (19.0)% (18.7)% Capital expenditure (2) (601) (560) (479) % of net sales (2.4)% (2.5)% (2.2)% Personnel expenses (7 903) (7 541) (7 310) Average number of employees 86 896 87 927 92 039 Order backlog, EUR billion 19.5 20.3 16.6 Key financial indicators and ratios Earnings per share attributable to equity holders of the parent Basic earnings per share, EUR Continuing operations 0.75 0.29 (0.45) Profit/(loss) for the year 0.76 0.29 (0.45) Diluted earnings per share, EUR Continuing operations 0.74 0.29 (0.45) Profit/(loss) for the year 0.75 0.29 (0.45) Proposed dividend per share, EUR (3) 0.12 0.08 – Return on capital employed % (2) 9.5% 10.1% 4.6% Return on shareholders’ equity % (2) 22.0% 10.9% neg. Equity ratio % (2) 49.9% 43.6% 34.7% Net debt to equity (gearing) % (2) (22.2)% (26.4)% (19.8)% Cash and cash equivalents 5 467 6 691 6 940 Total cash and interest-bearing financial investments (2) 9 244 9 268 8 061 Net cash and interest-bearing financial investments (2) 4 767 4 615 2 485 Net cash flows from operating activities 1 474 2 625 1 759 Free cash flow (2) 840 2 368 1 356 (1) Includes both current and non-current liabilities in the consolidated statement of financial position. (2) Non-IFRS measures. For the definition and reconciliation of non-IFRS measures to the most directly comparable IFRS measures, refer to ”Alternative performance measures” section. (3) 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 dividend from the retained earnings and/or as assets from the reserve for invested unrestricted equity. The financial information included in this “Operating and financial review” section as of and for the years ended 31 December 2022 and 2021 has been derived from our audited consolidated financial statements included in this report. The financial information should be read in conjunction with, and is qualified in its entirety by reference to, our audited consolidated financial statements. Results of operations This “Results of operations” section discusses the results of our continuing operations. Impact of COVID-19 on our operations The COVID-19 pandemic that started in early 2020 and had a severe impact on the global economy and financial markets during the year, continued to affect people and businesses around the world in 2021 and 2022. While the situation is improving and economic recovery is on its way, certain parts of the world and certain sectors of the economy continue to be hit harder than others. While in 2020 our financial performance was impacted by temporary factory closures, temporarily lower travel and other items, in 2021 and 2022 we saw some benefit related to an increase in demand in areas like Fixed Networks, where trends such as remote working drove communications service providers to increase investments in their broadband infrastructure. In 2022, certain countries, such as China, continued to see the impact of COVID-19, causing subsequent lockdowns in many cities which had an impact on our industry’s supply chain. As of 31 December 2022, potential risks and uncertainties continue to exist related to the scope and duration of the COVID-19 pandemic and the pace and shape of the economic recovery following it, and it is impossible to predict with accuracy the precise impact of such risks on our operations and our business. Cost savings program In the first quarter of 2021, we announced plans to reset our cost base, targeting a reduction of approximately EUR 600 million by the end of 2023. Given the strength in our end markets, the pace of restructuring in 2021 and 2022 has been slower than we initially planned. The overall size of the plan, however, remains unchanged, and continues to depend on the evolution of our end markets – consistent with our commentary when we announced the plan. In 2022, we updated our expectations for restructuring and associated charges as well as cash outflows, compared to our original estimates. We expect the cost savings to result in approximately EUR 500-600 million of restructuring and associated charges by 2023, down from our previous estimate of EUR 600-700 million. We also expect total restructuring and associated cash outflows to be approximately EUR 1 050-1 150 million, down slightly from our previous estimate of EUR 1 100-1 200 million. This total includes approximately EUR 500 million of cash outflows related to our previous restructuring program. Exit of Russian market Following the Russian invasion of Ukraine in early 2022, on 12 April 2022, Nokia announced its intention to exit the Russian market. Consequently, Nokia has suspended deliveries, stopped new business and moved its limited R&D activities out of Russia. However, Western governments had, for humanitarian reasons, expressed concerns about the risk of critical telecommunication network infrastructure in Russia failing and emphasized the importance of ensuring the continued flow of information and access to the internet which provides outside perspectives to the Russian people. Therefore, Nokia will aim to provide the necessary support to maintain the networks already present as the company exits the market and has applied for the relevant licenses to enable this support in compliance with current sanctions. Nokia sees this as the most responsible course of action to take. Regarding the financial impact of the decision, Russia accounted for less than 2% of our net sales in 2021. Additionally, Nokia recognized a provision of EUR 104 million in the first quarter of 2022 in relation to Russia. The exiting of the market has not had a material impact on our financials in 2022. Operating and financial review Operating and financial review Board review 80 81 NOKIA IN 2022 NOKIA IN 2022