Nokia Oyj — Share Issue/Capital Change 2018

Feb 1, 2018

Nokia Board of Directors approves the Nokia Equity Program for 2018 and the issuance of shares held by the company

Nokia Board of Directors approves the Nokia Equity Program for 2018 and the issuance of shares held by the company

Nokia Corporation
Stock Exchange Release
February 1, 2018 at 8:15 (CET +1)

Nokia Board of Directors approves the Nokia Equity Program for 2018 and the
issuance of shares held by the company

Espoo, Finland - Nokia announced today that its Board of Directors has approved
the company's equity program for 2018 (the "Nokia Equity Program 2018") designed
to support and align the participants' focus with Nokia's strategy and long-term
success. In line with previous years, the Nokia Equity Program 2018 includes the
following equity instruments:

* An employee share purchase plan (the "Employee Share Purchase Plan"),
entitling the eligible employees to contribute a part of their salary to
purchase Nokia shares. After a 12-month holding period, Nokia will offer the
employees one matching share for every two purchased shares held by an
employee at the end of the holding period;
* Performance shares, which are dependent on the achievement of independent
performance criteria ("Performance Shares"); and
* Restricted shares, which are used on a limited basis in retention and
recruitment circumstances ("Restricted Shares").

Since 2014, stock options have no longer been part of the Nokia equity programs.

Employee Share Purchase Plan

Under the Employee Share Purchase Plan, the eligible Nokia Group employees may
elect to make contributions from their monthly net salary to purchase Nokia
shares. The 2018 Employee Share Purchase Plan is planned to be offered to Nokia
employees in up to 76 countries, provided that there are no local regulatory or
administrative restraints in relation to such plan. Participation in the plan is
voluntary.

The monthly minimum and maximum contribution limit to the plan is EUR 15 and EUR
150, respectively. Consequently, the maximum participant contribution limit
during the plan cycle is EUR 1 800. Generally, the share purchases will be made
at market value on pre-determined dates on a quarterly basis during a 12-month
period. Nokia intends to deliver one matching share for every two purchased
shares that the participant still holds on July 31, 2019, which marks the end of
the Employee Share Purchase Plan cycle for 2018.

The aggregate maximum amount of contributions that employees can make during the
enrolment window for the plan cycle commencing in 2018 will be approximately EUR
60 million, which equals approximately 15.5 million Nokia shares using the
closing share price of EUR 3.88 on Nasdaq Helsinki on January 31, 2018.
Accordingly, based on the matching ratio of one matching share for every two
purchased shares, the number of matching shares would be approximately 7.75
million.

Performance Shares

Nokia uses Performance Shares as the main long-term incentive instrument for
executives and other eligible employees with the intention to effectively
contribute to the long-term value creation and sustainability of the company and
to align interests of the employees with those of Nokia's shareholders.
Performance Shares are also designed to ensure that the overall equity-based
compensation is based on performance in addition to supporting the recruitment
and ensuring retention of vital talent for the future success of Nokia.

Under the 2018 Performance Share plan, the pay-out will depend on whether
independent performance criteria have been met by the end of the performance
period. The performance criteria are Nokia annual earnings per share (non-IFRS,
diluted), annual free cash flow (non-IFRS) and revenue (non-IFRS).

The 2018 Performance Share plan has a two-year performance period (2018-2019)
and a subsequent one-year restriction period. The number of Performance Shares
to be settled would be determined by reference to the performance targets during
the performance period. For non-executive participants, 25 per cent of the
Performance Shares granted in 2018 will settle after the restriction period,
regardless of the satisfaction of the applicable performance criteria. In case
the applicable performance criteria are not satisfied, employees who are
executives at the date of Performance Share grant in 2018 will not receive any
settlement.

The grant under the 2018 Performance Share plan could result in an aggregate
maximum settlement of 94 million Nokia shares, in the event that maximum
performance against all the performance criteria is achieved.

Restricted Shares

Restricted Shares are granted to Nokia's executives and other eligible employees
on a more limited basis than Performance Shares for purposes related to
retention and recruitment to ensure Nokia is able to retain and recruit vital
talent for the future success of the company.

Under the 2018 Restricted Share plan, the Restricted Shares are divided into
three tranches, each tranche consisting of one third of the Restricted Shares
granted. The first tranche has a one-year restriction period, the second tranche
a two-year restriction period, and the third tranche a three-year restriction
period.

The grant under the 2018 Restricted Share plan could result in an aggregate
maximum settlement of 8 million Nokia shares.

Dilution effect

As of December 31, 2017, the aggregate maximum number of shares that could be
issued under Nokia's outstanding equity programs and stock option rights,
assuming the Performance Shares would be delivered at maximum level, represented
approximately 2.32 per cent of Nokia's total number of shares (excluding the
shares owned by Nokia Corporation). The potential maximum number of shares that
could be issued under the Equity Program 2018 represents approximately an
additional 1.96 percentage points, assuming delivery at maximum level for
Performance Shares and the delivery of matching shares against the maximum
amount of contributions of approximately EUR 60 million under the Employee Share
Purchase Plan.

Share issuance resolution for the settlement of shares under various Nokia
equity plans

To fulfill Nokia's obligations under the 2014, 2015, 2016 and 2017 Restricted
Share plans and the 2015 Performance Share plan in respect of shares to be
settled in 2018, Nokia's Board of Directors has resolved to issue, without
consideration, a maximum of 10.5 million Nokia shares held by the company to
settle its commitments to plan participants, who are all employees of the Nokia
Group.

FORWARD-LOOKING STATEMENTS

It should be noted that Nokia and its businesses are exposed to various risks
and uncertainties and certain statements herein that are not historical facts
are forward-looking statements, including, without limitation, those regarding:
A) our ability to integrate acquired businesses into our operations and achieve
the targeted business plans and benefits, including targeted benefits,
synergies, cost savings and efficiencies; B) expectations, plans or benefits
related to our strategies and growth management; C) expectations, plans or
benefits related to future performance of our businesses; D) expectations, plans
or benefits related to changes in organizational and operational structure; E)
expectations regarding market developments, general economic conditions and
structural changes; F) expectations and targets regarding financial performance,
results, operating expenses, taxes, currency exchange rates, hedging, cost
savings and competitiveness, as well as results of operations including targeted
synergies and those related to market share, prices, net sales, income and
margins; G) expectations, plans or benefits related to any future collaboration
or to business collaboration agreements or patent license agreements or
arbitration awards, including income to be received under any collaboration or
partnership, agreement or award; H) timing of the deliveries of our products and
services; I) expectations and targets regarding collaboration and partnering
arrangements, joint ventures or the creation of joint ventures, and the related
administrative, legal, regulatory and other conditions, as well as our expected
customer reach; J) outcome of pending and threatened litigation, arbitration,
disputes, regulatory proceedings or investigations by authorities; K)
expectations regarding restructurings, investments, capital structure
optimization efforts, uses of proceeds from transactions, acquisitions and
divestments and our ability to achieve the financial and operational targets set
in connection with any such restructurings, investments, capital structure
optimization efforts, divestments and acquisitions; and L) statements preceded
by or including "believe," "expect," "anticipate," "foresee," "sees," "target,"
"estimate," "designed," "aim," "plans," "intends," "focus," "continue,"
"project," "should," "is to," "will" or similar expressions. These statements
are based on management's best assumptions and beliefs in light of the
information currently available to it. Because they involve risks and
uncertainties, actual results may differ materially from the results that we
currently expect. Factors, including risks and uncertainties that could cause
these differences include, but are not limited to: 1) our ability to execute our
strategy, sustain or improve the operational and financial performance of our
business and correctly identify and successfully pursue business opportunities
or growth; 2) general economic and market conditions and other developments in
the economies where we operate; 3) competition and our ability to effectively
and profitably compete and invest in new competitive high-quality products,
services, upgrades and technologies and bring them to market in a timely manner;
4) our dependence on the development of the industries in which we operate,
including the cyclicality and variability of the information technology and
telecommunications industries; 5) our dependence on a limited number of
customers and large multi-year agreements;  6) Nokia Technologies' ability to
protect its IPR and to maintain and establish new sources of patent licensing
income and IPR-related revenues, particularly in the smartphone market; 7) our
global business and exposure to regulatory, political or other developments in
various countries or regions, including emerging markets and the associated
risks in relation to tax matters and exchange controls, among others; 8) our
ability to achieve the anticipated benefits, synergies, cost savings and
efficiencies of acquisitions, including the acquisition of Alcatel Lucent, and
our ability to implement changes to our organizational and operational structure
efficiently;  9) our ability to manage and improve our financial and operating
performance, cost savings, competitiveness and synergies generally and after the
acquisition of Alcatel Lucent; 10) exchange rate fluctuations, as well as
hedging activities; 11) our ability to successfully realize the expectations,
plans or benefits related to any future collaboration or business collaboration
agreements and patent license agreements or arbitration awards, including income
to be received under any collaboration, partnership, agreement or arbitration
award; 12) our dependence on IPR technologies, including those that we have
developed and those that are licensed to us, and the risk of associated IPR-
related legal claims, licensing costs and restrictions on use; 13) our exposure
to direct and indirect regulation, including economic or trade policies, and the
reliability of our governance, internal controls and compliance processes to
prevent regulatory penalties in our business or in our joint ventures; 14) our
ability to identify and remediate material weaknesses in our internal control
over financial reporting; 15) our reliance on third-party solutions for data
storage and service distribution, which expose us to risks relating to security,
regulation and cybersecurity breaches; 16) inefficiencies, breaches,
malfunctions or disruptions of information technology systems; 17) Nokia
Technologies' ability to generate net sales and profitability through licensing
of the Nokia brand, technology licensing and the development and sales of
products and services for instance in digital health, as well as other business
ventures, which may not materialize as planned; 18) our exposure to various
legislative frameworks and jurisdictions that regulate fraud and enforce
economic trade sanctions and policies, and the possibility of proceedings or
investigations that result in fines, penalties or sanctions; 19) adverse
developments with respect to customer financing or extended payment terms we
provide to customers; 20) the potential complex tax issues, tax disputes and tax
obligations we may face in various jurisdictions, including the risk of
obligations to pay additional taxes; 21) our actual or anticipated performance,
among other factors, which could reduce our ability to utilize deferred tax
assets; 22) our ability to retain, motivate, develop and recruit appropriately
skilled employees; 23) disruptions to our manufacturing, service creation,
delivery, logistics and supply chain processes, and the risks related to our
geographically-concentrated production sites; 24) the impact of litigation,
arbitration, agreement-related disputes or product liability allegations
associated with our business; 25) our ability to optimize our capital structure
as planned and re-establish our investment grade credit rating or otherwise
improve our credit ratings; 26) our ability to achieve targeted benefits from or
successfully achieve the required administrative, legal, regulatory and other
conditions and implement planned transactions, as well as the liabilities
related thereto; 27) our involvement in joint ventures and jointly-managed
companies; 28) the carrying amount of our goodwill may not be recoverable; 29)
uncertainty related to the amount of dividends and equity return we are able to
distribute to shareholders for each financial period; 30) pension costs,
employee fund-related costs, and healthcare costs; and 31) risks related to
undersea infrastructure, as well as the risk factors specified on pages 67 to
85 of our 2016 annual report on Form 20-F under "Operating and financial review
and prospects-Risk factors" and in our other filings or documents furnished with
the U.S. Securities and Exchange Commission. Other unknown or unpredictable
factors or underlying assumptions subsequently proven to be incorrect could
cause actual results to differ materially from those in the forward-looking
statements. We do not undertake any obligation to publicly update or revise
forward-looking statements, whether as a result of new information, future
events or otherwise, except to the extent legally required.

About Nokia
We create the technology to connect the world. Powered by the research and
innovation of Nokia Bell Labs, we serve communications service providers,
governments, large enterprises and consumers, with the industry's most complete,
end-to-end portfolio of products, services and licensing.

From the enabling infrastructure for 5G and the Internet of Things, to emerging
applications in digital health, we are shaping the future of technology to
transform the human experience. www.nokia.com

Media Enquiries:
Nokia
Communications
Tel. +358 (0) 10 448 4900
Email: press.services@nokia.com
Minna Aila, Vice President, Corporate Affairs

Investor Enquiries:
Nokia Investor Relations
Tel. +358 4080 3 4080
Email: investor.relations@nokia.com

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