Nokia 2009 Annual Report Download - page 109

of certain tax benefits from prior years. In 2007, taxes include the positive impact of EUR 122 million
due to changes in deferred tax assets resulting from the decrease in the German statutory tax rate.
The effective tax rate increased to 21.8% in 2008 compared with 18.4% in 2007, primarily due to the
EUR 1 879 million nontaxable gain on formation of Nokia Siemens Networks in 2007.
Minority Interests
Minority shareholders’ interest in our subsidiaries’ losses totaled EUR 99 million in 2008 compared
with minority shareholders’ interest in our subsidiaries’ losses of EUR 459 million in 2007. The change
was primarily due to the decrease in the net losses of Nokia Siemens Networks.
Net Profit and Earnings per Share
Net profit in 2008 totaled EUR 3 988 million compared with EUR 7 205 million in 2007, representing a
yearonyear decrease in net profit of 44.6% in 2008. Earnings per share in 2008 decreased to
EUR 1.07 (basic) and EUR 1.05 (diluted) compared with EUR 1.85 (basic) and EUR 1.83 (diluted) in
2007.
Related Party Transactions
There have been no material transactions during the last three fiscal years to which any director,
executive officer or at least 5% shareholder, or any relative or spouse of any of them, was party.
There is no significant outstanding indebtedness owed to Nokia by any director, executive officer or
at least 5% shareholder.
There are no material transactions with enterprises controlling, controlled by or under common
control with Nokia or associates of Nokia.
See Note 30 to our consolidated financial statements included in Item 18 of this annual report.
5B. Liquidity and Capital Resources
At December 31, 2009, our cash and other liquid assets (bank and cash; availableforsale
investments, cash equivalents; availableforsale investments, liquid assets; and investments at fair
value through profit and loss, liquid assets) increased to EUR 8 873 million, compared with
EUR 6 820 million at December 31, 2008, primarily as a result of a decline in cash used in investing
activities and cash used in financing activities. At December 31, 2007, cash and other liquid assets
totaled EUR 11 753 million.
Cash and cash equivalents (bank and cash and availableforsale investments, cash equivalent)
increased to EUR 5 926 million compared with EUR 5 548 million at December 31, 2008. We hold our
cash and cash equivalents predominantly in euro. Cash and cash equivalents totaled EUR 6 850 million
at December 31, 2007.
Net cash from operating activities was EUR 3 247 million in 2009 compared with EUR 3 197 million in
2008, and EUR 7 882 million in 2007. In 2009, net cash from operating activities increased primarily
due to a decrease in net working capital and a decrease in income taxes paid which were partially
offset by decreased profitability. In 2008, net cash from operating activities decreased primarily due
to decreased profitability, an increase in net working capital, Qualcomm lumpsum cash payment and
an increase in income taxes paid.
Net cash used in investing activities was EUR 2 148 million in 2009 compared with EUR 2 905 million
in 2008, and net cash from investing activities of EUR 710 million in 2007. Net cash used in
acquisitions of group companies, net of acquired cash, was EUR 29 million in 2009 compared with
EUR 5 962 million in 2008, due to the acquisition of NAVTEQ, and EUR 253 million of net cash from
acquisitions of group companies due to acquired cash in an otherwise noncash transaction in 2007.
Cash flow from investing activities in 2009 included purchases of current availableforsale
investments, liquid assets of EUR 2 800 million, compared with EUR 669 million in 2008 and
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