Press Release
Nokia enters into an agreement with the French State regarding the sale of
leading submarine networks business ASN
Nokia has signed a put option agreement with the French State contemplating the
sale of ASN for an Enterprise Value of EUR 350 million, subject to informing and
consulting with relevant employee representative bodies. This proposal:

  * Demonstrates Nokia's commitment to active portfolio management and focus on
    key strategic assets.
  * Focuses the portfolio and improves profitability of the Network
    Infrastructure business group.
  * Ensures continued development of a strategic, market-leading French and
    European business.
  * ASN is well-positioned to build on the transformation achieved under Nokia.

* Nokia will retain a 20% shareholding and board representation until targeted exit to ensure a smooth transition.
27 June 2024
Espoo, Finland - Nokia today announces it has entered into a put option to sell
Alcatel Submarine Networks (ASN), a leading submarine networks business, to the
French State, represented by the Agence des participations de l'Etat (APE),
subject to informing and consulting with the relevant employee representatives
at ASN and Nokia. Nokia will retain a 20% shareholding with board representation
to ensure a smooth transition until targeted exit, at which point the French
State would acquire Nokia's remaining interest.
By divesting ASN, a non-core standalone business for Nokia, Nokia can focus its
Network Infrastructure portfolio on growth opportunities in its core markets and
further improve profitability of the Network Infrastructure business group. The
transaction demonstrates Nokia's active management of its business portfolio,
one of the company's six strategic pillars.
Beginning with the second quarter, Nokia expects to account for ASN as a
discontinued operation. Going forward, Nokia's Network Infrastructure Business
Group will comprise three units: Fixed Networks, IP Networks and Optical
Networks. This is expected to reduce the net sales of Network Infrastructure by
approximately EUR 1 billion but will increase its operating profit margin by
100 -150 basis points. This does not impact Nokia's previously stated financial
outlook disclosed in its Q1 2024 financial report on 18 April 2024.
ASN is a French and global submarine communication networks leader, uniquely
positioned in turnkey systems. Under Nokia's ownership, ASN has significantly
grown revenues, and is well positioned to continue benefiting from the growth of
the large and attractive subsea cables market as the demand for, and importance
of, subsea cables has increased.
The proposed sale of ASN to the French State is the result of extensive
discussions which concluded that the French State is the most relevant custodian
of ASN. The French State, as a stable owner with a long-term interest in the
operation and maintenance of critical infrastructure, ensures continuity for ASN
customers, employees, and partners.
Recognizing the importance of ASN's heritage, operations and relationships with
its key stakeholders, the French State has made clear its full support for ASN's
management and strategy, and has agreed to maintain investment in the ASN
business and to support the further sustainable development of its vertically
integrated technology offering.
As the French State's shareholdings agency, the APE has a large portfolio of
holdings across multiple industrial sectors, services and businesses, and serves
global clients. Under the APE's ownership of ASN, the French State will secure
the future of a strong French and European player in a globally competitive
market.
The sale is expected to close at the end of 2024 or beginning of 2025, subject
to formal consultation of ASN's French Works Council and other customary closing
conditions and regulatory approvals.
Pekka Lundmark, President and CEO of Nokia, said: "This is a good step forward
in our strategy of actively managing our portfolio. ASN has been a standalone
part of our Network Infrastructure business and through the divestment, Network
Infrastructure will benefit from a streamlined portfolio with a focus on growth
and strengthening its technology leadership. ASN has gone through a significant
transformation in recent years and has a strong market position. I am pleased we
have found a natural owner for the business. The French State will ensure
continued investment in ASN and protection of critical industry know-how."
Alain Biston, President and CEO of ASN, said: "This is an incredibly exciting
moment for ASN as we undertake the next phase of our development. The French
State's ownership gives us a stable platform to further develop our vertically
integrated technology offering. This, combined with Nokia's retained stake,
underscores all parties' aligned interests in delivering a smooth transition for
the benefit of our customers, suppliers and other stakeholders."
Bruno Le Maire, French Minister of Economy, said: "The French State, represented
by the Agence des Participations de l'Etat (French shareholding Agency), is
thrilled to announce its willingness to acquire 80% shareholding of ASN. The
Company is one of the world leaders in the submarine cable market, and the only
company of its kind in Europe."
Advisors
BNP Paribas is serving as financial advisor to Nokia, Skadden is serving as
legal counsel, and RELIANS (Pascal Dupeyrat, Jean-Christophe Martin) is serving
as strategic and institutional advisor.
About Nokia
At Nokia, we create technology that helps the world act together.
As a B2B technology innovation leader, we are pioneering networks that sense,
think and act by leveraging our work across mobile, fixed and cloud networks. In
addition, we create value with intellectual property and long-term research, led
by the award-winning Nokia Bell Labs.
Service providers, enterprises and partners worldwide trust Nokia to deliver
secure, reliable and sustainable networks today - and work with us to create the
digital services and applications of the future.
About ASN
ASN, part of Nokia, leads the industry in terms of transmission capacity and
installed base with more than 750,000 km of optical submarine cable deployed
worldwide, enough to circumnavigate the globe 19 times.
From traditional Telecom applications to Content & Over-The-Top service provider
infrastructures as well as Energy applications, ASN provides all the elements of
a global turnkey undersea transmission systems, tailored to the individual
customer's needs.
An extensive service portfolio completes its comprehensive offering for the
submarine business, including project management, installation and
commissioning, along with marine and maintenance operations performed by ASN's
fleet of cable ships.
Media inquiries
Nokia Communications, Corporate
Email: Press.Services@nokia.com
(https://www.globenewswire.com/Tracker?data=F_0CtRij3HM6TZbla93hGdriVqiZJde6WJGc
junTWaRWgbzCwqZy1TT4H8URPg5r1zkJ0ImgEFZ3AsJg_U8DdNaxLlOj2i41ySignNIdwiDg2WcurSoS
bmO26zRc9H1N)
Follow us on social media
LinkedIn
(https://www.globenewswire.com/Tracker?data=jeYrnUpWVI9bsCSc9uJKnvdgDFVzmNC6Yib7
q41IDbiDz8uL_TuqHuMT3yhryHHwMlsOtA--2hUNj4pw56dHiOgF7wAjuw9wQ1vPyYEg2k8=) X
(https://www.globenewswire.com/Tracker?data=iQy9qFwJDBqGIIuSWI-
cp_AV9F0su5bVaAT65obAKn-asH4-MqB-wx9XO1uVHK0h-MwobxeYNhf35o6nlGCcQQ==) Instagram
(https://www.globenewswire.com/Tracker?data=ta9fmvW7g-EhOfOVUi6ecDV0hkgG_lEeJT-
TdaRh8myc-
aFOcSI1qIP2Yft2DT9r0YAJfYe6vZ8tqQcpLfGDkVTbvGQtth2E94WbJkSoEnI=) Facebook
(https://www.globenewswire.com/Tracker?data=FE-
vySTIn3CKzPgm5QFZDi3FsLE5HthhYogP_dHlCUp6tGU34_WxrzgeBOjO-
bYv0PjDM56EyVwna39FL9D4nBZDm4sEZPdxZp8p3m7XTrY=) YouTube
(https://www.globenewswire.com/Tracker?data=DwysoC3pViTQV1PqqJXP89e7oXToZxSTvQWN
4vwfv-n1b1xks9lo9EPn_ZIokGd2XhDHhYNgmWnjznuJAjMqXw==)
Â