Nokia Corporation Sponsored ADR

Company Overview

Business Model: Nokia Corporation's core value proposition is advancing connectivity to secure a brighter world by connecting intelligence and powering customers with advanced connectivity. The company provides critical network infrastructure and technology solutions. Its primary revenue generation mechanisms involve serving Telecommunication providers by transforming legacy networks for AI demands, supporting mobile subscriptions and fiber broadband connections; AI & Cloud providers by delivering advanced optical and IP data center connectivity; and Mission Critical Enterprise & Defense sectors by connecting machines, devices, and people for secure, AI-enabled operations.

Market Position: Nokia Corporation holds leading positions in several key markets. Its RAN technology is utilized in 15 out of 20 of the world’s fastest 5G networks, supporting over 4.4 billion mobile subscriptions. The company's technology is included in 70% of the world’s 5G standalone networks and 70% of fiber broadband connections in North America. In the AI & Cloud segment, 9 out of 10 top global hyperscalers use Nokia Corporation’s optical networks. Within its Network Infrastructure segment, Nokia Corporation is ranked number two globally in Optical Networks and number one in IP edge routing. It also holds the number one global position in xPON OLT for the sixth consecutive year and in 10G (XGS PON) ONT/OLT. In the global Mobile RAN market, Nokia Corporation was ranked third for Q1-Q3 2025. The company's extensive R&D investments, exceeding €160 billion since 2000, and a patent portfolio of over 26,000 families (including over 8,000 essential to 5G) underpin its competitive advantages.

Recent Strategic Developments:

• New President and CEO: Justin Hotard was appointed President and CEO on 1 April 2025, bringing expertise in AI and data center markets.
• Acquisition: Completed the acquisition of Infinera Corporation in February 2025 for EUR 2.5 billion, enhancing Network Infrastructure scale, innovation, and presence in AI & Cloud and North America.
• R&D Campus: Opened a new R&D campus in Oulu, Finland, in September 2025, dedicated to 5G and 6G radio innovation with 3,000 staff.
• Strategic Partnership: Announced a strategic partnership with NVIDIA Corporation in October 2025, involving a USD 1 billion equity investment from NVIDIA Corporation. This collaboration aims to accelerate AI-native mobile networks and AI networking infrastructure, integrating NVIDIA Corporation-powered AI-RAN products into Nokia Corporation’s portfolio.
• New Strategy: Unveiled at Capital Markets Day in November 2025, focusing on connecting intelligence, accelerating value creation, and simplifying the operating model. The strategy targets leading the AI-driven transformation of networks.
• AI & Cloud Expansion: Generated EUR 2.4 billion in orders from AI & Cloud customers in 2025, launching new 800G pluggables and expanding the 7220 IXR H6 switching platform.
• Operating Model Simplification: A simplified operating model with two primary segments (Network Infrastructure and Mobile Infrastructure) took effect on 1 January 2026, moving non-core units into a dedicated Portfolio Businesses segment.

Geographic Footprint: Nokia Corporation operates in approximately 130 countries. Its average number of employees in 2025 was approximately 78,000, with significant regional distribution: Europe (33,000), India (18,300), North America (10,000), Greater China (7,200), Asia Pacific (3,900), Latin America (2,800), and Middle East & Africa (2,800). The company's net sales are distributed across Americas (35.1%), EMEA (41.6%), and APAC (23.3%).

Cross-Border Operations: Nokia Corporation maintains a global presence through various structures. Key international subsidiaries include those acquired through Infinera Corporation, which provided an internal Indium Phosphide wafer fab in California, United States, and a site for advanced packaging and testing. The company also completed the acquisition of China Huaxin Post & Telecommunication Economy Development Center’s non-controlling ownership interest in Nokia Shanghai Bell for EUR 501 million in December 2025. Nokia Corporation engages in extensive licensing agreements globally, with over 250 licensees including Apple, Samsung, Lenovo, Mercedes-Benz, Amazon, and HMD Global Oy. Its supply chain involves approximately 9,000 suppliers, with spend distributed across Asia Pacific, Japan/India (44%), Europe (28%), China (16%), and Americas (12%). The company is subject to multi-jurisdictional regulatory compliance, including export controls, sanctions, and anti-corruption laws across its operational regions.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: 43.5% (2025)
• Operating Margin: 4.4% (2025)
• Net Margin: 3.3% (2025)

Investment in Growth:

• R&D Expenditure: €4,855 million (24.4% of revenue)
• Capital Expenditures: €606 million (Purchase of property, plant and equipment and intangible assets)
• Strategic Investments: The acquisition of Infinera Corporation for EUR 2.5 billion and a USD 1.0 billion (EUR 850 million net) equity investment from NVIDIA Corporation to accelerate AI-native mobile networks and AI networking infrastructure.

Currency Impact Analysis:

• A weaker US dollar in 2025 had a negative impact on Nokia Corporation's net sales (reported in euros) and operating profit (before hedging).
• Nokia Corporation's net sales exposure in 2025 was approximately 25% EUR, 55% USD, 0% CNY, 5% INR, and 15% Other currencies. Total costs had similar exposure: 25% EUR, 50% USD, 5% CNY, 5% INR, and 15% Other.
• The company employs various hedging strategies, including cash flow hedge accounting for GBP, JPY, and USD exposures, net investment hedge accounting for CNY, and fair value hedges using cross-currency and interest rate swaps.

Business Segment Analysis

Network Infrastructure

Financial Performance:

• Revenue: €7,980 million (+22.4% YoY)
• Operating Margin: 9.8% (down from 11.7% in 2024)
• Key Growth Drivers: The acquisition of Infinera Corporation contributed €1,273 million to net sales. Strong performance in Optical Networks (+85% YoY) and Fixed Networks (+3% YoY). Product Portfolio:
• Optical Networks: Global number two market position.
• IP Networks: Global number one position in IP edge routing.
• Fixed Networks: Global number one position in xPON OLT and 10G (XGS PON) ONT/OLT. Market Dynamics:
• Competitive positioning is strong, with leading market shares in key sub-segments. The segment is benefiting from increased demand for advanced optical and IP data center connectivity, particularly from AI & Cloud providers. Geographic Revenue Distribution:
• Not explicitly disclosed by segment, however, the Infinera Corporation acquisition enhances presence in North America.

Cloud and Network Services

Financial Performance:

• Revenue: €2,606 million (+0.7% YoY)
• Operating Margin: 13.0% (up from 8.0% in 2024)
• Key Growth Drivers: Improved profitability driven by operational efficiencies. Technology is present in 65% of telecommunication providers’ 5G SA networks. Product Portfolio:
• Solutions for 5G standalone networks, cloud-native core, and enterprise campus edge. Market Dynamics:
• Focus on supporting telecommunication providers' transformation and expanding into AI & Cloud solutions. Geographic Revenue Distribution:
• Not explicitly disclosed by segment.

Mobile Networks

Financial Performance:

• Revenue: €7,800 million (-4.3% YoY)
• Operating Margin: 2.8% (down from 5.5% in 2024)
• Key Growth Drivers: Gained 18 new telecommunication customers (7 in 2025). Strategic partnership with NVIDIA Corporation for AI-RAN products, with deployments with T-Mobile U.S., SoftBank, Indosat Ooredoo Hutchison, and KDDI. Product Portfolio:
• Mobile RAN (Radio Access Network) solutions, 5G agreements (408 commercial), and private wireless solutions (over 1,000 customers). Market Dynamics:
• Ranked third in global Mobile RAN market share for Q1-Q3 2025. Facing competitive pressures and a challenging market environment, reflected in declining revenue and operating margin. Geographic Revenue Distribution:
• Not explicitly disclosed by segment.

Nokia Technologies

Financial Performance:

• Revenue: €1,501 million (-22.1% YoY)
• Operating Margin: 70.6% (down from 78.5% in 2024)
• Key Growth Drivers: Contracted net sales run-rate increased to €1.4 billion. Licensing programs in expansion areas (automotive, consumer electronics, IoT, multimedia) contribute an annual revenue run-rate of over €200 million. Product Portfolio:
• Patent portfolio of over 26,000 families, including over 8,000 essential to 5G. Market Dynamics:
• High-margin licensing business with over 250 licensees, including Apple, Samsung, Lenovo, and Mercedes-Benz. Resolved patent litigation with Amazon in March 2025. Geographic Revenue Distribution:
• Nokia Technologies IPR and licensing net sales are allocated to Finland.

International Operations & Geographic Analysis

Revenue by Geography:

International Business Structure:

• Subsidiaries: Nokia Corporation operates through numerous subsidiaries globally. The acquisition of Infinera Corporation in 2025 added significant operational presence, including an Indium Phosphide wafer fab in California, United States. Nokia Corporation also completed the acquisition of the non-controlling interest in Nokia Shanghai Bell in December 2025.
• Joint Ventures: Nokia Corporation holds investments in associated companies and joint ventures, with an aggregate carrying amount of €180 million in 2025. In 2024, TD Tech Holding Limited divested its operating subsidiaries, generating a gain for Nokia Corporation.
• Licensing Agreements: Nokia Corporation has extensive cross-border licensing agreements for its patent portfolio with over 250 licensees, including major global players like Apple, Samsung, Lenovo, Mercedes-Benz, Amazon, and HMD Global Oy.

Cross-Border Trade:

• Export Markets: Nokia Corporation's global sales across approximately 130 countries indicate broad export market penetration for its network infrastructure, software, and mobile network solutions.
• Import Dependencies: The company purchased over €11 billion worth of products and services from approximately 9,000 suppliers in 2025. Its supply chain spend distribution highlights significant dependencies on Asia Pacific, Japan/India (44%), Europe (28%), China (16%), and Americas (12%) for materials and services.
• Transfer Pricing: Transfer pricing policies are a component of Nokia Corporation's international tax strategy and are subject to regulatory scrutiny in various jurisdictions.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: €624 million in 2025, repurchasing 130,813,954 shares as part of a program to repurchase 150 million shares for up to €900 million (completed April 2025).
• Dividend Payments: €759 million paid in 2025.
• Proposed Dividend: €0.14 per share for 2025, totaling approximately €804 million based on outstanding shares.
• Future Capital Return Commitments: The Board is authorized to issue and repurchase up to 530 million shares until October 2026.

Balance Sheet Position:

• Cash and Equivalents: €5,462 million (as of 31 December 2025)
• Total Debt: €3,413 million (interest-bearing liabilities as of 31 December 2025)
• Net Cash Position: €3,378 million (total cash and interest-bearing financial investments less total debt)
• Credit Rating: BBB- (stable) by Fitch, Ba1 (positive) by Moody’s, and BBB- (stable) by S&P Global. Nokia Corporation aims to maintain investment grade.
• Debt Maturity Profile: Key maturities include €630 million 2.00% Senior Notes (EUR) due March 2026, USD 500 million 4.375% Senior Notes due June 2027, and €500 million 3.125% Senior Notes (EUR) due May 2028.

Cash Flow Generation:

• Operating Cash Flow: €2,071 million (2025)
• Free Cash Flow: €1,465 million (2025)

Currency Management:

• Cash holdings are diversified across major currencies, though specific amounts by currency are not detailed.
• Financial hedging instruments, including cash flow hedges, net investment hedges, and fair value hedges, are utilized to manage currency exposure.

Operational Excellence

Production & Service Model: Nokia Corporation's operational philosophy centers on advancing connectivity through a global network of R&D and manufacturing facilities. The company focuses on developing and delivering critical network infrastructure and technology solutions.

Global Supply Chain Architecture: Key Suppliers & Partners:

• General Suppliers: Nokia Corporation relies on approximately 9,000 suppliers globally, with over €11 billion in purchases in 2025.
• Manufacturing Partners: The company operates its own manufacturing facilities in Finland (Oulu), India (Chennai), and the United States (Sunnyvale, California, and Allentown, Pennsylvania).
• Technology Partners: Strategic collaborations include NVIDIA Corporation for AI-RAN products and Bell Labs' partnership with NASA, Lunar Outpost, and Intuitive Machines for lunar network deployment.

Facility Network:

• Manufacturing: Key production locations include Oulu, Finland (Base Stations, 11,500 m²); Chennai, India (Base Stations, Radio Controllers and Transport, 15,500 m²); Sunnyvale, California, United States (Compound Semiconductor, 2,300 m²); and Allentown, Pennsylvania, United States (Production and Development, 2,400 m²). The Infinera Corporation acquisition added an internal Indium Phosphide wafer fab in California.
• Research & Development: A new R&D campus in Oulu, Finland, opened in September 2025, focusing on 5G and 6G radio innovation with 3,000 staff. Nokia Bell Labs is a key R&D arm, involved in advanced technology development.
• Distribution: While not explicitly detailed, the global operational footprint implies a comprehensive logistics and distribution infrastructure to serve customers in approximately 130 countries.

Operational Metrics:

• Order backlog: €19.5 billion (as of 31 December 2025), with 57% expected within 1 year.
• Average number of employees: 78,005 (2025).

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Nokia Corporation directly serves Telecommunication providers, AI & Cloud providers, and Mission Critical Enterprise & Defense customers globally through its sales forces.
• Channel Partners: The company engages in strategic partnerships, such as with NVIDIA Corporation, to integrate and distribute AI-native networking solutions.
• Digital Platforms: While not explicitly detailed, the company's focus on AI & Cloud and advanced connectivity implies leveraging digital channels for customer engagement and service delivery.

Customer Portfolio: Enterprise Customers:

• Telecom Providers: Represented €15,313 million in net sales in 2025. Nokia Corporation has 408 commercial 5G agreements and over 1,000 private wireless customers.
• AI & Cloud and Mission Critical Enterprise & Defense: Generated €3,085 million in net sales in 2025, with €2.4 billion in orders from AI & Cloud customers.
• Licensees: Contributed €1,501 million in net sales in 2025, with over 250 licensees including Apple, Samsung, Lenovo, Mercedes-Benz, Amazon, and HMD Global Oy.
• Customer Concentration: No single customer represented more than 10% of net sales in 2025, 2024, or 2023, indicating a diversified customer base.

Regional Market Penetration:

• North America: Nokia Corporation's technology is included in 70% of fiber broadband connections in North America. The Infinera Corporation acquisition further strengthens its presence in this region.
• Global: Nokia Corporation RAN is used in 15 out of 20 of the world’s fastest 5G networks, and its technology is in 70% of the world’s 5G standalone networks.

Competitive Intelligence

Global Market Structure & Dynamics

Industry Characteristics: The serviceable addressable market (SAM) for Nokia Corporation's target segments is projected to grow significantly. The AI supercycle SAM is projected to be €60 billion by 2028, with a 9% CAGR. Telecommunication providers represent a €69 billion SAM (+2% from 2024, 1% CAGR 2025-2028). AI & Cloud providers represent a €17 billion SAM (+28% from 2024, 26% CAGR until 2028). Mission Critical Enterprise & Defense represents a €13 billion SAM (+11% from 2024, 14% CAGR until 2028). These dynamics indicate a shift towards high-growth AI and enterprise-driven connectivity solutions.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: While specific competitor names are not explicitly listed in the filing for direct comparison, Nokia Corporation's market share data indicates competition across its segments.

• Mobile Networks: Nokia Corporation ranks third in global Mobile RAN market share, implying competition from two larger players.
• Network Infrastructure: Despite strong positions (number two in Optical Networks, number one in IP edge routing, number one in Fixed Networks), the presence of other market players is evident.
• Nokia Technologies: The extensive licensing agreements and patent litigation activities suggest a competitive landscape for intellectual property.

Regional Competitive Dynamics: The competitive landscape varies by region, influenced by local market conditions, regulatory environments, and customer preferences. Nokia Corporation's strategy includes co-innovating with customers and partners to gain competitive advantage in specific markets.

Risk Assessment Framework

Strategic & Market Risks

Global Market Dynamics:

• Strategy Execution: Failure to effectively execute the new AI-driven strategy and realize benefits from the simplified operating model (effective 1 January 2026).
• Technology Adoption: Investments in new technologies may not achieve market acceptance or generate expected returns.
• M&A Integration: Risks associated with the successful integration and realization of synergies from acquisitions, such as Infinera Corporation.
• Economic Conditions: Exposure to general economic conditions, including inflation, currency fluctuations, and interest rate changes, impacting customer spending and operational costs.
• Geopolitical Escalation: Risks from geopolitical tensions (e.g., US-China, East Asia, Ukraine, Middle East) affecting market access, supply chains, and demand.
• Competition & Price Erosion: Intense competition and potential price erosion in key markets.
• Customer Concentration: Dependency on a limited number of large customers and potential customer consolidation.

Operational & Execution Risks

Global Supply Chain Vulnerabilities:

• Supplier Dependency: Geographic concentration of suppliers (e.g., Asia, California) and reliance on a large number of suppliers (~9,000) create dependency risks.
• Regional Disruptions: Vulnerability to natural disasters, political instability, or man-made disruptions in key operational regions.
• Trade Restrictions: Impact of export controls, tariffs, and other trade restrictions on global operations and supply chain efficiency.
• Technology Investment: Failure to invest effectively in and commercialize new technologies (e.g., 5G-Advanced, Open RAN, 6G, AI-native networks).
• IT Systems & Cybersecurity: Disruptions to IT systems or cybersecurity threats impacting operations and data integrity.
• Talent Management: Ability to attract, retain, and develop skilled employees globally.

Financial & Regulatory Risks

Currency & Financial Risks:

• Foreign Exchange: Exposure to exchange rate fluctuations, particularly for the US dollar, impacting reported net sales and operating profit.
• Interest Rate Risk: Exposure to interest rate changes on its debt portfolio.
• Credit & Liquidity: Risks related to access to funding and maintaining investment-grade credit ratings.
• Tax Regulations: Complexity of multi-jurisdictional tax laws, ability to utilize deferred tax assets, and ongoing tax investigations in various countries (e.g., Australia, Brazil, China, France, India, Kenya, Mexico, United States).
• Pension Obligations: Significant defined benefit pension obligations, primarily in the United States, Germany, and the United Kingdom.

Regulatory & Compliance Risks:

• Multi-Jurisdictional Compliance: Increased enforcement and compliance costs related to national security, competition law, export control, sanctions, privacy, cybersecurity, climate change, human rights, and anti-corruption laws across diverse markets.
• Trade Regulations: Compliance with export controls and sanctions, which can restrict technology transfer and market access.

Geopolitical & External Risks

Country-Specific Risks:

• Political Risk: Political unrest, open conflicts, and changes in government policies in key markets.
• Economic Risk: Currency devaluation and economic instability in specific countries.
• Regulatory Changes: Rapid changes in local laws and regulations (e.g., security, privacy, AI, digital economy, sustainability) affecting operations and business models.
• Litigation: Exposure to mass labor litigation (e.g., Brazil) and other multi-jurisdictional legal disputes.

Innovation & Technology Leadership

Research & Development Focus: Global R&D Network:

• Oulu, Finland: New R&D campus opened in September 2025, focusing on 5G and 6G radio innovation with 3,000 staff.
• Nokia Bell Labs: Collaborated with NASA, Lunar Outpost, and Intuitive Machines in March 2025 to deploy a 4G/5G network on the Moon, demonstrating cutting-edge research capabilities.
• Innovation Pipeline: R&D investments in 2025 totaled €4.9 billion, focusing on 5G-Advanced, Open RAN, 6G, and AI-native networks. Nokia Corporation is a founding member of the Next G Alliance, indicating a commitment to future connectivity standards.

Intellectual Property Portfolio:

• Patent Strategy: Nokia Corporation holds a substantial patent portfolio of over 26,000 patent families, including more than 8,000 patents essential to 5G. The company actively manages its IP through licensing programs and defends its rights, as evidenced by the patent agreement signed with Amazon in March 2025.
• Licensing Programs: Over 250 licensees, including major global companies like Apple, Samsung, Lenovo, and Mercedes-Benz, generate significant revenue. Licensing programs in expansion areas (automotive, consumer electronics, IoT, multimedia) contribute an annual revenue run-rate of over €200 million.
• IP Litigation: Engages in multi-jurisdictional disputes to protect its intellectual property, with recent resolution of litigation with Amazon.

Technology Partnerships:

• Strategic Alliances: A strategic partnership with NVIDIA Corporation, involving a USD 1 billion equity investment, aims to accelerate AI-native mobile networks and AI networking infrastructure.
• Research Collaborations: Nokia Bell Labs' collaboration with NASA, Lunar Outpost, and Intuitive Machines highlights its engagement in advanced research and development projects with external partners.

Leadership & Governance

Executive Leadership Team

International Management Structure: The Group Leadership Team (GLT) had 12 members at 31 December 2025, representing five nationalities, with 25% female representation. The company's global operations imply a regional leadership structure, though specific details are not provided.

Board Composition: The Board of Directors consists of 10 members, with 40% female representation and five nationalities. All Board members elected on 29 April 2025 were independent of Nokia Corporation and its significant shareholders. Sari Baldauf was re-elected Chair, and Timo Ihamuotila was elected Vice Chair of the Board. The Audit Committee has four members: Thomas Dannenfeldt (Chair), Pernille Erenbjerg, Lisa Hook, and Mike McNamara, with Thomas Dannenfeldt, Pernille Erenbjerg, and Lisa Hook identified as 'audit committee financial experts'.

Regulatory Environment & Compliance

Multi-Jurisdictional Regulatory Framework: Primary Regulatory Environments:

• Finland: Nokia Corporation is incorporated under the laws of the Republic of Finland, with a statutory tax rate of 20%.
• Major Markets (e.g., United States, Brazil, China, France, India, Kenya, Mexico, Australia): Nokia Corporation is subject to ongoing tax investigations and various regulatory frameworks in these jurisdictions. Cross-Border Compliance:
• Export Controls: Compliance with technology transfer restrictions and licensing requirements for cross-border transactions.
• Sanctions Compliance: Adherence to multi-jurisdictional sanctions regimes and continuous monitoring.
• Anti-Corruption: Strict compliance with anti-bribery laws, including the FCPA and local anti-corruption statutes, supported by internal compliance programs.
• Other Regulations: Compliance with regulations related to national security, competition law, privacy, cybersecurity, climate change, and human rights across its global operations.

International Tax Strategy:

• Transfer Pricing: Nokia Corporation implements inter-company pricing policies and maintains documentation to comply with transfer pricing regulations in various jurisdictions.
• Tax Treaties: Utilizes double taxation agreements to manage its international tax exposure.
• BEPS Compliance: Monitors and adapts to Base Erosion and Profit Shifting (BEPS) regulations. The impact of OECD Pillar Two model rules on income tax expense in 2025 was immaterial.

Environmental & Social Impact

Global Sustainability Strategy: Environmental Commitments:

• Climate Strategy: Nokia Corporation is committed to reducing total GHG emissions (scopes 1, 2, 3) to net-zero by 2040 across its value chain, a target approved by the Science Based Targets Initiative (SBTi) in January 2025.
• Carbon Neutrality: The long-term target is a 90% reduction in absolute scope 1, 2, and 3 GHG emissions by 2040 from a 2019 base year.
• Renewable Energy: Achieved a 96% share of renewable electricity in its facilities in 2025.

Regional Sustainability Initiatives:

• Emissions Reduction: A near-term target is a 50% reduction in scope 1, 2, and 3 (categories 1, 2, 4, 6, 11) GHG emissions by 2030 from a 2019 base year. Total GHG emissions in 2025 increased by 17% over 2024 but were 27% below the 2019 base year. Scope 1 and 2 emissions decreased by 37% compared to 2024 and by 86% compared to 2019.
• Supply Chain: Global supplier ESG requirements and sustainability standards are integrated into procurement.
• Circular Economy: Target of 95% waste circularity rate by 2030, with an outcome of 90% in 2025. Aims for at least 50% recycled aluminum, copper, steel, and polymerics in mechanical parts by 2030.

Social Impact by Region:

• Community Investment: Engages in local community programs, with regional priorities.
• Labor Standards: 98% of employees completed mandatory Ethical Business Training in 2025. The company received 884 ethics and compliance reports in 2025, investigating 346 and substantiating 118 violations, leading to 24 dismissals.

Currency Management & Financial Strategy

Multi-Currency Operations: Currency Exposure:

Hedging Strategies:

• Transaction Hedging: Utilizes cash flow hedge accounting for short-term foreign exchange risk management, with significant notional amounts in GBP, JPY, and USD.
• Translation Hedging: Employs net investment hedge accounting for balance sheet currency exposure, particularly for CNY.
• Economic Hedging: While not explicitly termed "economic hedging," Nokia Corporation's operational diversification across numerous countries and its balanced revenue and cost exposure in major currencies provide a natural hedge against long-term competitive currency fluctuations. The company also uses fair value hedges, including cross-currency swaps for USD debt and interest rate swaps for EUR debt, to manage interest rate and currency risks.