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NOKIA Interim Report for Q3 2021 Strong profitability and cash generation ▪ Constant currency sales growth of 2 % constrained by expected supply chain and Mobile Networks North America headwinds ■ Strong sales growth in Network Infrastructure ( + 6 % y - o - y constant currency ) and Cloud & Network Services ( + 12 % ) Comparable gross margin of 40.8 % ( reported 40.7 % ) , reflecting continued strong execution across the business Mobile Networks comparable gross margin of 37.8 % ( + 220bps y - o - y ) showed better cost competitiveness Comparable operating margin of 11.7 % ( reported 9.3 % ) , new operating model bringing strong financial accountability Comparable diluted EPS of EUR 0.08 ; reported diluted EPS of EUR 0.06 Strong free cash flow generation of € 0.7bn Launched new FP5 IP routing silicon which sets new industry benchmarks particularly on power efficiency Continuing to manage supply chain constraints but challenges are increasing into Q4 Reiterating our full year guidance for net sales of € 21.7bn - 22.7bn and comparable operating margin of 10-12 % and now expect to be towards upper - end of the margin range considering continued strong performance All financial metrics above refer to Q3 2021 ■ ■ 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 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 % Q3'21 Reported operating profit Amortization of acquired intangible assets Restructuring and associated charges Impairment of assets , net of impairment reversals Settlement of legal disputes Gain on defined benefit plan amendment Other , net Comparable operating profit 5 399 40.7 % ( 1 036 ) ( 674 ) 502 9.3 % 351 0.06 4 300 28 October 2021 5 399 40.8 % ( 1 007 ) ( 583 ) 633 11.7 % 463 0.08 20.2 % Q3'20 YoY change 5 294 37.1 % ( 923 ) ( 631 ) 350 6.6 % 197 0.03 1 869 5 294 37.4 % ( 880 ) ( 558 ) 486 9.2 % 305 0.05 11.6 % Reconciliation of reported operating profit to comparable operating profit EUR million 2 % 360bps 12 % 7 % 43 % Q3'21 502 99 34 ( 1 ) 0 0 ( 1 ) 633 270bps 78 % 100 % 130 % 2 % 340bps 14 % 4 % 30 % 250bps 52 % 60 % Constant currency YoY change 2 % Q3'20 350 101 120 5 0 ( 90 ) 0 486 2 % Q1 - Q3'21 YoY change 43 % 15 788 39.9 % ( 3 096 ) ( 2 034 ) 1 418 9.0 % 30 % 965 0.17 4 300 15 788 40.5 % ( 2 992 ) ( 1 719 ) 1 867 11.8 % 1377 0.24 Summary Q1 - Q3'20 YoY change 15 299 36.9 % ( 2 942 ) ( 2121 ) 15 301 37.8 % ( 2 808 ) ( 1 820 ) 1 025 6.7 % Q1 - Q3'21 1418 293 211 32 ( 80 ) 0 444 2.9 % 180 0.03 1 869 1 867 Profit for the period EPS , diluted ROIC² 855bps 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 Q3'20 and Q1 - Q3'20 have been recast accordingly . Refer to Note 1 , Basis of preparation , in the Financial statement information section for details . ² Comparable 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 . 653 3 % 300bps 5 % ( 4 ) % 219 % 0.11 610bps 436 % 467 % 130 % 3 % 270bps 7 % ( 6 ) % 82 % 510bps 111 % 118 % Q1 - Q3'20 444 308 337 25 0 ( 90 ) 1 1 025 Constant currency YoY change YoY change 219 % 6 % 82 % 6 % 1