Nokia 2012 Annual Report Download - page 131

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 a coupon of 5.375% and issue price of 99.075%; and USD 500 million due in 2039
with a 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, 2012, we had a USD 4 000 million US Commercial Paper program,
USD 4 000 million Euro Commercial Paper program, domestic Finnish commercial paper program
totaling EUR 750 million, EUR 5 000 million Euro Medium-Term Note program, and a shelf registration
statement for an indeterminate amount of debt securities on file with the US Securities and Exchange
Commission. At December 31, 2012, we also had undrawn committed credit facility of
EUR 1 500 million maturing in 2016. The credit facility has no financial covenants.
In December 2011, Nokia Siemens Networks entered into a EUR 1 255 million committed forward
starting credit facility effective from the forward start date of June 1, 2012. By April 2012 the committed
facility had been increased to EUR 1 500 million. The facility replaced the EUR 2 000 million revolving
credit facility from 2009 that matured in June 2012. The EUR 1 500 million committed facility was
comprised of two equal parts, a EUR 750 million revolving credit facility maturing in June 2015 and a
EUR 750 million term loan maturing in June 2013. In December 2012, EUR 150 million of the term loan
was repaid and the maturity of the remaining EUR 600 million term loan was extended to March 2014.
The forward starting credit facility is used for general corporate purposes and includes financial
covenants relating to financial leverage and interest coverage of Nokia Siemens Networks. At
December 31, 2012, all financial covenants were satisfied.
In 2012, Nokia Siemens Networks had EUR 132 million in Finnish pension loans outstanding with final
maturity in 2015, EUR 150 million loan outstanding from the European Investment Bank (EIB) with final
maturity in 2015 and EUR 80 million loan outstanding from the Nordic Investment Bank (NIB) with final
maturity in 2015. The proceeds of the EIB and NIB loans are being used to finance the investments in
research and development in radio access network technology for mobile communication systems. The
loans include similar financial covenants as the forward starting credit facility. At December 31, 2012,
all financial covenants were satisfied.
At December 31, 2012, Nokia Siemens Networks had a domestic Finnish commercial paper program
totaling EUR 500 million.
We have historically maintained a high level of liquid assets. Management estimates that the cash and
other liquid assets level of EUR 9 909 million at the end of 2012, 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 2013.
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 we have increased our investment in services and software by acquiring
companies with specific technology assets and expertise. In 2012, capital expenditures totaled
EUR 461 million, compared with EUR 597 million in 2011 and EUR 679 million in 2010. The decrease
in 2012 resulted primarily from site consolidation and increased efficiency. 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
130