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Summary NOKIA Interim Report for Q1 2021 Sales growth in Q1 driving margin increase and strong cash generation ▪ Strong start to the year with constant currency net sales up 9 % year - on - year , driven by strong growth in Network Infrastructure and solid growth in Mobile Networks ; reported net sales increased 3 % Enterprise constant currency net sales up 18 % year - on - year , as we gained 63 new customers , more than doubling the number we added in Q1 2020 ; reported net sales increased 14 % Comparable gross margin of 38.2 % ( reported 37.9 % ) , reflecting improvements in Mobile Networks , mainly driven by 5G growth and favorable product and regional mix , and broad improvements across Network Infrastructure ▪ Comparable operating margin of 10.9 % ( reported 8.5 % ) , with improvements in comparable operating profit across all business groups Comparable diluted EPS of EUR 0.07 ; reported diluted EPS of EUR 0.05 Strong cash flow performance , driven by operating profit and good collection of receivables ■ Solid liquidity position , with net cash of EUR 3.7bn and total cash of EUR 8.8bn Executing well on three - phased approach to achieve sustainable , profitable growth and technology leadership set out at Capital Markets Day ■ Full year 2021 and 2023 outlook maintained EUR million ( except for EPS in EUR ) Reported results Q1'21 Q1'20 YoY change Constant currency YoY change Net sales 5 076 4 913 3 % 9 % Gross margin % ¹ 37.9 % 35.3 % 260bps Research and development expenses¹ ( 996 ) ( 1007 ) ( 1 ) % Selling , general and administrative expenses¹ ( 649 ) ( 780 ) ( 17 ) % Operating profit / ( loss ) 431 ( 76 ) Operating margin % 8.5 % ( 1.5 ) % Profit / ( loss ) for the period 263 ( 115 ) EPS , diluted 0.05 ( 0.02 ) Net cash and current financial investments 3689 1320 179 % Comparable results Net sales 5 076 4914 3 % 9 % Gross margin % 38.2 % 36.4 % 180bps Research and development expenses ( 973 ) ( 974 ) Selling , general and administrative expenses ( 552 ) ( 672 ) ( 18 ) % Operating profit 551 116 375 % Operating margin % 10.9 % 2.4 % 850bps Profit for the period 375 EPS , diluted 0.07 ROIC² 15.3 % 33 0.01 11.5 % 1 036 % 600 % 380bps ¹In Q4 2020 , Nokia reclassified certain items of income and expenses from other operating income and expenses to the functions . The comparative reported results for Q1'20 have been revised accordingly . Refer to Note 1 , Basis of preparation , in the Financial statement information section for details . ²Comparable ROIC = Comparable operating profit after tax , last four quarters / invested capital , average of last five quarters ' ending balances . Refer to Note 10 , Performance measures , in the Financial statement information section for details . Reconciliation of reported operating profit / ( loss ) to comparable operating profit EUR million Reported operating profit / ( loss ) Amortization of acquired intangible assets Restructuring and associated charges Gain on sale of fixed assets Other Comparable operating profit 29 April 2021 Q1'21 Q1'20 YoY change 431 ( 76 ) 97 101 36 87 ( 15 ) 0 2 4 551 116 375 % 1