Nokia 2012 Annual Report Download - page 132

software-related intangible assets. In accordance with our current estimate, we expect the amount of
capital expenditures (excluding acquisitions) during 2013 to be approximately EUR 350 million, and to
be funded from cash flow from operating activities.
Structured Finance
Structured finance includes customer financing and other third-party financing. Network operators in
some markets sometimes require their suppliers, including us, to arrange, facilitate or provide
long-term financing as a condition to obtain or bid on infrastructure projects.
Credit markets in general have been tight since 2009. Requests for customer financing and especially
extended payment terms have remained at a reasonably high level. However, during 2012, the amount
of financing provided directly to our customers has decreased. We do not currently intend to
significantly increase financing directly to our customers, which may have an adverse effect on our
ability to compete successfully for their business. Rather, as a strategic market requirement, we plan to
continue to arrange and facilitate financing, typically supported by export credit or guarantee agencies,
and provide extended payment terms to a number of customers. Extended payment terms may
continue to result in a material aggregate amount of trade credits, but the associated risk is mitigated
by the fact that the portfolio relates to a variety of customers.
The following table sets forth our total customer financing, outstanding and committed, for the years
indicated.
Customer Finance
At December 31,
2012 2011 2010
(EUR millions)
Financing commitments ........................ 34 86 85
Outstanding long-term loans (net of allowances and
write-offs) .................................. 39 60 64
Current portion of outstanding long-term loans (net of
allowances and write-offs) ..................... 35 54 39
Outstanding financial guarantees and securities
pledged .................................... — — —
Total ........................................ 108 200 188
In 2012, our total customer financing, outstanding and committed, decreased to EUR 108 million from
EUR 200 million in 2011 and primarily consisted of outstanding short-term and long-term loans to
network operators.
In 2011, our total customer financing, outstanding and committed, increased to EUR 200 million from
EUR 188 million in 2010 and primarily consisted of outstanding long-term loans to network operators.
See Note 34(b) to our consolidated financial statements included in Item 18 of this annual report for
further information relating to our committed and outstanding customer financing.
We continue to make arrangements with financial institutions and investors to sell credit risk we have
incurred from the commitments and outstanding loans we have made as well as from the financial
guarantees we may have given. Should the demand for customer finance increase in the future, we
intend to further mitigate our total structured financing exposure, market conditions permitting.
We expect our structured financing commitments to be financed mainly through the capital markets as
well as through cash flow from operations.
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