Nokia 2009 Annual Report Download - page 111

voluntarily cancelled the USD 2 000 million committed credit facility maturing in 2009 due to the
abovedescribed repayment of part of our shortterm borrowings from the proceeds of the Eurobond
issue in February 2009.
Nokia Siemens Networks had committed credit facilities of EUR 2 000 million maturing in 2012 and
EUR 750 million maturing in 2013. EUR 2 000 million committed revolving credit facility of Nokia
Siemens Networks includes financial covenants related to gearing test, leverage test and interest
coverage test of Nokia Siemens Networks. As of December 31, 2009, all financial covenants were
satisfied.
In June 2009, Nokia Siemens Networks signed and fully drew down a EUR 250 million loan from the
European Investment Bank. The proceeds of the loan are being used to finance the investments in
research and development to Radio Access Network technology for mobile communication systems.
The loan from European Investment Bank includes similar financial covenants to the
EUR 2 000 million revolving credit facility. As of December 31, 2009, all financial covenants were
satisfied.
At February 28, 2010, the total amount available to us under our committed credit facilities was
EUR 2 774 million, excluding the amounts available only for the repayment of our outstanding
commercial papers. See Note 33(c) to our consolidated financial statements included in Item 18 of
this annual report for further information relating to our funding programs and committed credit
facilities.
We have historically maintained a high level of liquid assets. Management estimates that the cash
and other liquid assets level of EUR 8 873 million at the end of 2009, together with our available
credit facilities, cash flow from operations, funds available from longterm and shortterm debt
financings, as well as the proceeds of future equity or convertible bond offerings, will be sufficient to
satisfy our future working capital needs, capital expenditure, research and development, acquisitions
and debt service requirements at least through 2010.
In October 2009, Moody’s downgraded our longterm credit rating from A1 to A2. The ratings of our
short and longterm debt at December 31, 2009, were:
Shortterm ................. Standard & Poor’s A1
Moody’s P1
Longterm .................. Standard & Poor’s A
Moody’s A2
We believe that we will continue to be able to access the capital markets on terms and in amounts
that will be satisfactory to us, and that we will be able to obtain bid and performance bonds, to
arrange or provide customer financing as necessary to support our business and to engage in
hedging transactions on commercially acceptable terms.
We primarily invest in research and development, marketing and building the Nokia brand. However,
over the past few years Nokia has increased its investment in services and software by acquiring
companies with specific technology assets and expertise. In 2009, capital expenditures totaled
EUR 531 million, compared with EUR 889 million in 2008 and EUR 715 million in 2007. The decrease
in 2009 resulted primarily from decreased capital expenditures in machinery and equipment. Principal
capital expenditures during the three years 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. In accordance with our current estimate, we expect
the amount of capital expenditures (excluding acquisitions) during 2010 to be approximately EUR
650 million, and to be funded from cash flow from operating activities.
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