Nokia (NOKIA) Investor Update summary

Leadership transition and succession planning

• Pekka Lundmark will step down as CEO on March 31, 2025, and serve as special advisor until year-end, after leading the company since 2020.

• Justin Hotard, currently at Intel, will become President and CEO on April 1, 2025, and will be based at Nokia's headquarters in Espoo, Finland.

• Succession planning began last spring, considering both internal and external candidates.

• Hotard brings over 25 years of experience in global technology, with expertise in AI, data centers, and revenue growth, and has held executive roles at Intel, Hewlett Packard Enterprise, NCR Corporation, and Symbol Technologies.

• The board values team complementarity and U.S. market experience in the new CEO.

Strategic positioning and market outlook

• Nokia has regained technology leadership in 5G radio and cloud-native core networks.

• Significant growth and improved profitability achieved in Network Infrastructure, with patent licensing business longevity secured.

• The company is well positioned for growth in data centers, private networks, industrial edge, and defense communications.

• Recent market recovery noted after a downturn in operator investments, with Q4 ending at 9% growth, 16% in North America, and the best margin in a decade.

• Nokia refreshed its brand, transformed its operating model, and rebalanced its culture and portfolio to support future innovation.

Data center and AI strategy

• Targeting €1 billion additional revenue from data centers by 2028, with €100 million annual investment increase.

• The addressable data center market is estimated at €20 billion and growing rapidly.

• Infinera acquisition expected to close soon, aiming for successful integration and value capture.

• AI, cloud, and connectivity are converging, creating a new market super cycle.

• Nokia's strong telco customer base and heritage seen as key differentiators in AI and hyperscale markets.