The call begins with a disclaimer about forward-looking statements and identifies risks affecting future business and financial performance. The presentation discusses growth rates on a constant currency and portfolio basis, and margins based on comparable reporting. The agenda includes key messages from the quarter and a review of financial performance.

The new leader of Nokia shares initial observations after three weeks, emphasizing the company's strong heritage in connectivity and outlining plans for presenting a complete value creation vision in November.

Despite a year-over-year net sales decline, Nokia experienced solid order growth and market recovery, with notable expansions in network infrastructure and cloud services. The company emphasizes its strong product portfolio, trusted partnership with customers, and potential growth in hyperscale, enterprise, and defense markets, while addressing challenges including global trade impacts and capital allocation strategies.

The acquisition of Infinera is expected to boost product innovation, enhance access to hyperscale customers, and complement existing customer, geographic, and technology profiles. Despite a decline in Q4 net sales, there was strong growth in network infrastructure and cloud services, offsetting challenges in mobile networks and Nokia technologies. The company remains confident in achieving synergy targets and generated significant free cash flow.

Net sales in mobile networks have grown, particularly in North America and India, with a decline in EMEA. Gross margin decreased due to a one-off contract settlement. Cloud and Network Services saw a strong start to the year with expanded margins. Nokia Technologies' net sales declined due to a challenging comparison with the previous year but saw an increase in the annual net sales run rate. Cash performance was strong in the quarter, with sizable free cash flow generation.

The company announces a significant, multi-year contract extension with T-Mobile, emphasizing the partnership's role in shaping the future of mobile connectivity in the US. Additionally, it highlights a growing backlog in the network infrastructure segment, attributing this to strategic acquisitions and the increasing demands of AI and data center builds, particularly in high-growth geographies and with hyperscale customers.

Despite a reported loss of $100 million, which raised questions about revenue and margin expectations, it was clarified that the loss pertains to Q1 and includes only March's results post-acquisition. Infinera, including stock-based compensation, was loss-making in the previous year, offering context for the reported figures.

The acquisition of Infinera alongside Nokia brings significant scale, expected to unlock $200 million in synergies. Despite Infinera not substantially impacting current operating profit, it's anticipated to accelerate performance in 2025.

A significant one-time contract settlement of 120 million was taken due to a customer-specific project related to stabilizing and enhancing portfolio competitiveness. The issue predates recent portfolio improvements and was a result of underestimating the total cost to remediate a problem. The company assured that this is a one-time issue specific to this project and that measures are being taken to improve operational visibility and prevent similar occurrences.

The discussion highlights the importance of portfolio orientation, scale, bandwidth, reliability, and performance in winning large AI data center deals. The speaker emphasizes the relevance of their solutions to hyperscale customers due to the increasing demands driven by AI and cloud technologies. They also mention aggressive investment in opportunities, the necessity of collaboration and co-development, and the longer cycle for revenue growth in this sector. The acquisition of Infinera is cited as a strategic move to leverage learnings and investments in the optical side for IP networks.

The speaker discusses the positive impact of recent licensing deals, such as the Amazon agreement, on Nokia's non-smartphone IP sales. They also address the cost impact of tariffs, emphasizing the focus on short-term mitigation strategies and potential long-term adjustments to their manufacturing network, including utilizing existing US facilities.

The company reiterates its strong growth outlook for network infrastructure, particularly in the script and IP sides, with investments targeting hyperscaler and data center segments. Despite headwinds in At and T, mobile networks are expected to develop stably. Cloud and network services show good growth momentum, especially on the core side, with an operating profit assumption of around one point ed billion for technology.

The new executive was pleasantly surprised by Nokia's advanced technology base, including ongoing research at Nokia Bell Labs, and the passion and team mindset of the employees towards evolving the business.

The company aims to drive efficiencies in non-core areas and invest significantly in R&D and go-to-market strategies, prioritizing organic growth and strategic acquisitions that promise cost and revenue synergies. Emphasis is placed on identifying scalable growth segments that materially impact the business, ensuring disciplined spending on opportunities that move the needle for a $20 billion company. The goal is to spend enough to gain competitive advantages and provide unique value to customers.

The discussion highlights the distinction between hyperscale and enterprise markets, emphasizing the significant growth in the optical and networking business post-infrastructure acquisition. There's recognition of early opportunities in IP networks, albeit with a longer revenue cycle, and a strategic investment of €100 million annually is mentioned to drive incremental sales in the enterprise networking sector, indicating a focus on technology stack evolution to maximize customer value and accelerate growth.

The company anticipates robust growth for the year, with a particular emphasis on the optical networks division, which showed the best organic growth in the first quarter.

The speaker highlights significant growth opportunities in the optical sector, followed by IP networks, particularly emphasizing the importance of traction with hyperscalers. Fixed networks are seen as a stable, growing business, with notable demand for fiber and fixed wireless access contributing to growth, especially in markets like India. The company aims to capitalize on hyperscaler and CSP opportunities in the IP sector, focusing on data center investments.

The company confirms stabilization in mobile networks growth, noting a 30K net footprint gain since year-end 2023, with further details to be disclosed at a later capital markets day event.

Enterprise sales growth was primarily driven by the optical and infrastructure segments, particularly in the US, validating the early thesis on infrastructure growth.

Nokia and Amazon have amicably resolved their intellectual property rights dispute, ending all litigation. The deal, details of which remain confidential, has contributed to an increase in Nokia Technologies' net sales run rate to the guided range of Ed Ed billion euros.

The speaker highlights the significance of Amazon as a customer and partner in various business areas, emphasizing the comprehensive nature of their relationship beyond a tech licensing agreement.

The discussion highlights Nokia's prioritization of capital allocation for growth, particularly in network infrastructure. Despite the market's forecasted limitations, Nokia is focusing on maximizing value through R&D, go-to-market strategies, and talent development. The CEO emphasizes the importance of investing in businesses at different stages, noting the aggressive investment cycle in AI and hyperscale builds, and the potential for collaboration with customers to drive innovation.

The speaker discusses the unique position of their company as a European player with a full portfolio in the AI Cloud and mobile networks space, highlighting robust R&D, core, and IP portfolios. They emphasize the potential for significant value capture, encouraged by growth in the core business and emerging opportunities in enterprise and defense. The speaker notes the importance of understanding business cycles and scale differences between various segments, while also looking forward to AI-driven investments in services like augmented reality, virtual reality, autonomous vehicles, and robotics, which will require performant, reliable, and secure wireless communications.

There was no significant demand pull-forward for MN or Ni from US customers in anticipation of tariffs during the first quarter, according to discussions with customers and internal assessments. The company is actively monitoring the situation and considering how to leverage its global manufacturing network in response to potential shifts in demand.

Despite discussions of hyperscalers like Microsoft and Amazon freezing data center leasing, the company observes strong growth and order growth in its optical business segment, indicating no significant hesitancy in customer spend. Hyperscalers' leasing pauses do not necessarily reflect changes in capital expenditure plans, given their various investment options. Historical trends suggest short-term digestion periods following massive capital builds, akin to current technology transitions in the GPU market, which is not surprising to the company. The order book and pipeline suggest no long-term shift in investment thesis for the market segment.

The dialogue discusses the agility and flexibility required in a global manufacturing network to mitigate potential impacts of tariffs, highlighting past successes during supply shortages. It also addresses the monitoring of ongoing situations and the anticipation of growth in specific business segments, particularly noting the slower growth expected in the fiber market compared to optical and IP networking.

The discussion focuses on clarifying whether the company absorbs the cost of tariffs or passes them onto customers, noting that the answer varies across different contracts. Additionally, there's a query about the T-Mobile contract, seeking details on its commencement and potential margin impacts, to which the response highlights the contract's significance and long-term nature but provides no further specifics due to confidentiality.