Nokia 2009 Annual Report Download - page 110

EUR 4 798 million in 2007. In 2009, net cash used in investing activities also included purchase of
investments at fair value through profit and loss, liquid assets of EUR 695 million. Additions to
capitalized R&D expenses totaled EUR 27 million, compared with EUR 131 million in 2008 and
EUR 157 million in 2007. In 2009 and in 2008, we had no longterm loans made to customers,
compared with longterm loans made to customers of EUR 261 million in 2007.
Capital expenditures for 2009 were EUR 531 million compared with EUR 889 million in 2008 and
EUR 715 million in 2007. Major items of capital expenditure included production lines, test equipment
and computer hardware used primarily in research and development, office and manufacturing
facilities as well as services and software related intangible assets. Proceeds from maturities and sale
of current availableforsale investments, liquid assets, decreased to EUR 1 730 million, compared
with EUR 4 664 million in 2008 and EUR 4 930 million in 2007.
Net cash used in financing activities decreased to EUR 696 million in 2009 compared with
EUR 1 545 million in 2008, primarily as a result of a decrease in the share buybacks, an increase in
longterm borrowings, and a decrease in dividends paid partly offset by a decrease of shortterm
borrowings. Net cash used in financing activities decreased to EUR 1 545 million in 2008, compared
with 3 832 million in 2007 primarily as a result of an increase in proceeds from shortterm
borrowings. Dividends paid decreased to EUR 1 546 million in 2009 compared with EUR 2 048 million
in 2008 and EUR 1 760 million in 2007.
At December 31, 2009, we had EUR 4 432 million in longterm interestbearing liabilities and
EUR 771 million in shortterm borrowings, offset by EUR 8 873 million in cash and other liquid assets,
resulting in a net liquid assets balance of EUR 3 670 million, compared with EUR 2 368 million at the
end of 2008 and EUR 10 663 million at the end of 2007. The increase in 2009 reflected positive
operational cash flow partially offset by the dividend payment and capital expenditures. For further
information regarding our longterm liabilities, see Note 15 to our consolidated financial statements
included in Item 18 of this annual report. Our ratio of net interestbearing debt, defined as shortterm
and longterm debt less cash and other liquid assets, to equity, defined as shareholders’ equity and
minority interests, was negative 25%, negative 14% and negative 62% at December 31, 2009, 2008
and 2007, respectively.
Our Board of Directors has proposed a dividend of EUR 0.40 per share for the year ended
December 31, 2009, subject to shareholders’ approval, compared with EUR 0.40 and EUR 0.53 per
share paid for the years ended December 31, 2008 and 2007, respectively. See Item 3A “Selected
Financial Data — Distribution of Earnings.”
We have no significant refinancing requirements in 2010. We may incur additional indebtedness from
time to time as required to finance acquisitions and working capital needs. In February 2009, we
issued EUR 1 750 million of Eurobonds (EUR 1 250 million bonds due 2014 with a coupon of 5.50%
and issue price of 99.855%; and EUR 500 million bonds due 2019 with a coupon of 6.75% and issue
price of 99.702%) under our Euro Medium Term Note, or EMTN, program to repay part of our short
term borrowings. In February 2009, we also signed and fully drew down a EUR 500 million loan from
the European Investment Bank. The proceeds of the loan are being used to finance part of our
smartphone research and development expenses. In May 2009, we issued USD 1 500 million of US
bonds (USD 1 000 million due in 2019 with coupon of 5.375% and issue price of 99.075%; and
USD 500 million due in 2039 with coupon of 6.625% and issue price of 99.494%) under our shelf
registration statement on file with the US Securities and Exchange Commission for general corporate
purposes.
At December 31, 2009, we had a USD 4 000 million US Commercial Paper, or USCP, program,
USD 4 000 million Euro Commercial Paper, or ECP, program, EUR 5 000 million EMTN program,
domestic Finnish commercial paper program totaling EUR 750 million and a shelf registration
statement for an indeterminate amount of debt securities on file with the US Securities and Exchange
Commission. At December 31, 2009, we also had committed credit facilities of USD 1 923 million
maturing in 2012, and a number of shortterm uncommitted facilities. In February 2009, we
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