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NOKIA Report for Q2 and Half Year 2021 Strong first half , 2021 Outlook revised upwards ■ ■ Important progress on our three - phased strategy . Mobile Networks strengthening its competitiveness with major product launch , including some industry leading features . Network Infrastructure continued to gain share in the first half . ▪ Our new operating model is delivering clear accountability and financial discipline through the organization . Comparable gross margin of 42.3 % ( reported 41.0 % ) in Q2 , reflecting broad improvements , particularly in Mobile Networks , which benefitted from a one - time software deal and 5G growth . ■ ■ Top - line strength continued in Q2 , with constant currency net sales up 9 % year - on - year , driven by growth across all business groups , with particular strength in Network Infrastructure . Reported net sales increased 4 % . Comparable operating margin of 12.8 % ( reported 9.1 % ) in Q2 , with improvements across all business groups , also helped by the one - time software deal in Mobile Networks . Q2 comparable diluted EPS of EUR 0.09 ; reported diluted EPS of EUR 0.06 . Generated positive free cash flow for the fifth quarter in a row ; liquidity position remains solid with EUR 3.7bn net cash . ▪ Strong performance in first half 2021 with 9 % constant currency sales growth ( reported net sales + 4 % ) and comparable operating margin of 11.9 % ( reported 8.8 % ) , driving increase in our full year Outlook although headwinds remain for the second half . ■ Considering our strong start to 2021 , we revise our full year 2021 Outlook , including net sales expected to be EUR 21.7bn to 22.7bn ( previously EUR 20.6bn to EUR 21.8bn ) with comparable operating margin in the range of 10-12 % ( previously 7-10 % ) . EUR million ( except for EPS in EUR ) Reported results Net sales Gross margin % ¹ Research and development expenses¹ Selling , general and administrative expenses¹ Operating profit Operating margin % Profit / ( loss ) for the period EPS , diluted Net cash and current financial investments Comparable results Net sales Gross margin % Research and development expenses Selling , general and administrative expenses Operating profit Operating margin % Q2¹21 Reported operating profit Restructuring and associated charges Amortization of acquired intangible assets Settlement of legal disputes Impairment of assets , net of impairment reversals Other , net Comparable operating profit 5313 41.0 % ( 1 063 ) ( 712 ) 484 9.1 % 351 0.06 3 688 29 July 2021 5313 42.3 % ( 1011 ) ( 585 ) 682 12.8 % 539 0.09 18.4 % Q2'20 YoY change 5 092 38.1 % ( 1 013 ) ( 709 ) 170 3.3 % 99 0.02 1550 5 093 39.6 % ( 953 ) ( 590 ) 423 8.3 % 316 0.06 11.4 % Reconciliation of reported operating profit to comparable operating profit EUR million Q2'21 484 4 % 290bps 5 % 0 % 141 97 ( 80 ) 32 8 682 185 % 580bps 255 % 200 % 138 % 4 % 270bps 6 % ( 1 ) % 61 % 450bps 71 % 50 % Q2'20 170 130 106 Constant currency YoY change 0 19 ( 2 ) 423 9 % 9 % Summary Q1 - Q2'21 10 389 39.5 % ( 2 060 ) ( 1 360 ) 916 8.8 % 614 0.11 3 688 61 % 10 389 40.3 % ( 1985 ) ( 1137 ) 1 234 11.9 % 914 0.16 Q1 - Q2'20 YoY change 916 177 194 ( 80 ) 33 ( 6 ) 1234 10 005 36.8 % ( 2 019 ) ( 1 489 ) 94 Profit for the period EPS , diluted ROIC² 700bps 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 Q2'20 and Q1 - Q2'20 have been recast 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 . 0.9 % ( 17 ) 0.00 1 550 10 007 38.0 % ( 1 928 ) ( 1 262 ) 539 5.4 % 348 0.06 4 % 270bps 2 % ( 9 ) % 874 % 790bps 138 % YoY change Q1 - Q2¹21 Q1 - Q2'20 YoY change 185 % 874 % 94 217 207 0 20 1 539 4 % 230bps 3 % ( 10 ) % 129 % 650bps 163 % 167 % Constant currency YoY change 129 % 9 % 9 % 1