Nokia 2012 Annual Report Download - page 130

compared with EUR 3 676 million in 2011 and EUR 8 573 million in 2010. In 2012, net cash used in
investing activities also included purchase of investments at fair value through profit and loss, liquid
assets of EUR 40 million, compared with EUR 607 million in 2011.
Capital expenditures for 2012 were EUR 461 million, compared with EUR 597 million in 2011 and
EUR 679 million in 2010. 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 2 355 million, compared with EUR 6 090 million in 2011 and EUR 7 181 million in 2010. Net cash
used in financing activities decreased to EUR 465 million in 2012, compared with EUR 1 099 million in
2011, due to EUR 743 million net proceeds from the issuance of a convertible bond and a decrease in
dividend payments to EUR 755 million in 2012 from EUR 1 536 million in 2011 partly offset by an
increase in repayments of long-term and short-term borrowings as well as no contributions from other
shareholders compared to the EUR 500 million equity investment in Nokia Siemens Networks by
Siemens in 2011. 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. Dividends paid decreased to EUR 755 million in 2012,
compared with EUR 1 536 million in 2011 and EUR 1 519 million in 2010.
At December 31, 2012, we had EUR 5 087 million in long-term interest-bearing liabilities and
EUR 462 million in short-term borrowings, offset by EUR 9 909 million in cash and other liquid assets,
resulting in a net liquid assets balance of EUR 4 360 million, compared with EUR 5 581 million at the end
of 2011 and EUR 6 996 million at the end of 2010. The decrease in net liquid assets in 2012 was
primarily due to cash outflows relating to restructuring, the payment of the dividend and cash outflows
related to net financial expenses and taxes as well as capital expenditures. This was partially offset by
positive overall net cash from operating activities, excluding cash outflows related to restructuring, net
financial expenses and taxes, as well as cash flows related to the receipt of quarterly platform support
payments from Microsoft (which commenced in the fourth quarter 2011), proceeds from sale of fixed
assets and recording of the EUR 85 million equity component of the convertible bond as shareholders’
equity according to IFRS. 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 46%, negative 40% and negative 43% at December 31, 2012, 2011 and 2010, respectively.
Our Board of Directors has proposed that no dividend be paid for the year ended December 31, 2012,
compared with EUR 0.20 and EUR 0.40 per share paid for the years ended December 31, 2011 and
2010, respectively. See Item 3A. “Selected Financial Data – Distribution of Earnings.”
We have no significant refinancing requirements in 2013. We may incur additional indebtedness from
time to time as required to finance acquisitions and working capital needs, or to pre-finance future debt
maturities. In 2012, we issued a convertible bond with a nominal value of EUR 750 million and net
proceeds of EUR 743 million. The convertible bond carries a coupon of 5% and has a maturity date in
October 2017. It is convertible to our shares with an initial conversion price of EUR 2.6116 per share.
The conversion price is subject to adjustment according to customary anti-dilution provisions. In 2011
and 2010, we did not raise material new long-term debt. 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 program to repay part of our short-term borrowings. In
February 2009, we also signed and fully drew a EUR 500 million loan from the European Investment
129