Nokia 2011 Annual Report Download - page 139

due to a decrease in profitability and an increase in net working capital partially offset by an increase in
cash inflows of IPR royalty income, the receipt of a platform support payment from Microsoft in the
fourth quarter of 2011 and an increase in other financial income. In 2010, net cash from operating
activities increased primarily due to a decrease in net working capital partially offset by an increase in
other financial income and expenses, net.
Net cash from investing activities was EUR 1 499 million in 2011, compared with a usage of
EUR 2 421 million in 2010 and net cash used in investing activities of EUR 2 148 million in 2009. Net
cash used in acquisitions of group companies, net of acquired cash, was EUR 817 million in 2011,
compared with EUR 110 million in 2010 and EUR 29 million in 2009. Cash flow from investing activities in
2011 included purchases of current available-for-sale investments, liquid assets of EUR 3 676 million,
compared with EUR 8 573 million in 2010 and EUR 2 800 million in 2009. In 2011, net cash used in
investing activities also included purchase of investments at fair value through profit and loss, liquid
assets of EUR 607 million, compared with EUR 646 million in 2010. There were no additions to
capitalized R&D expenses in 2011, compared with no addition in 2010 and EUR 27 million addition in
2009.
Capital expenditures for 2011 were EUR 597 million, compared with EUR 679 million in 2010 and
EUR 531 million in 2009. 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 6 090 million, compared with EUR 7 181 million in 2010 and EUR 1 730 million in 2009. Net cash
used in financing activities increased to EUR 1 099 million in 2011, compared with EUR 911 million in
2010, primarily as a result of a decrease in proceeds from long-term borrowings and an increase in
payment of short-term borrowings, partially offset by an increase in other contributions from
shareholders. Net cash used in financing activities increased to EUR 911 million in 2010, compared
with EUR 696 million in 2009, primarily as a result of a decrease in proceeds from long-term
borrowings, partly offset by a decrease in payments of short-term borrowings. Dividends paid
increased to EUR 1 536 million in 2011, compared with EUR 1 519 million in 2010 and
EUR 1 546 million in 2009.
At December 31, 2011, we had EUR 3 969 million in long-term interest-bearing liabilities and
EUR 1 352 million in short-term borrowings, offset by EUR 10 902 million in cash and other liquid
assets, resulting in a net liquid assets balance of EUR 5 581 million, compared with EUR 6 996 million
at the end of 2010 and EUR 3 670 million at the end of 2009. The decrease in net liquid assets in 2011
was primarily due to payment of the dividend, cash outflows related to the acquisition of Motorola
Solutions’ networks assets and capital expenditures, partially offset by positive overall net cash from
operating activities and a EUR 500 million equity investment in Nokia Siemens Networks by Siemens.
For further information regarding our long-term liabilities, see Note 16 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 capital and
reserves attributable to equity holders of the parent and non-controlling interests, was negative 40%,
negative 43% and negative 25% at December 31, 2011, 2010 and 2009, respectively.
Our Board of Directors has proposed a dividend of EUR 0.20 per share for the year ended
December 31, 2011, subject to the shareholders’ approval, compared with EUR 0.40 and
EUR 0.40 per share paid for the years ended December 31, 2010 and 2009, respectively. See Item 3A.
“Selected Financial Data—Distribution of Earnings.”
We have no significant refinancing requirements in 2012. We may incur additional indebtedness from
time to time as required to finance acquisitions and working capital needs, or to pre-finance future debt
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