Nokia 2015 Annual Report Download - page 62

60 NOKIA IN 2015
Structured nance
Structured nance includes customer nancing and other third-party
nancing. Network operators occasionally require their suppliers,
including us, to arrange, facilitate or provide long-term nancing
asacondition for obtaining infrastructure projects.
At December 31, 2015, our total customer nancing, outstanding
andcommitted equaled EUR 213 million, an increase of EUR 57 million,
as compared to EUR 156 million in 2014. At December 31, 2013,
ourtotal customer nancing, outstanding and committed ,equaled
EUR 64 million. Customer nancing primarily consisted of nancing
commitments to network operators.
Refer to Note 35, Risk management, of our consolidated nancial
statements included in this annual report for furtherinformation
relating to our committed and outstanding customer nancing.
We expect our customer nancing commitments to be nanced mainly
from cash and other liquid assets and through cash ow from operations.
At December 31, 2015, guarantees of our performance consisted
ofEUR 400 million of guarantees that are provided to certain Nokia
Networks customers in the form of bank guarantees or corporate
guarantees issued by Nokia Networks. These instruments entitle the
customer to claim payments as compensation for non-performance
by Nokia Networks of its obligations under network infrastructure
supply agreements. Depending on the nature of the instrument,
compensation is either payable on demand, or is subject to verication
of non-performance.
Financial guarantees and securities pledged that we may give on
behalf of customers, represent guarantees relating to payment by
certain Nokia Networks customers and other third parties under
specied loan facilities between such customers or other third
partiesand their creditors. Our obligations under such guarantees
arereleased upon the earlier of expiration of the guarantee or
earlypayment by the customer or other third party.
Refer to Note 30, Commitments and contingencies, of our
consolidated nancial statements included in this annual report for
further information regarding commitments andcontingencies.
Venture fund investments and commitments
We make nancing commitments to a number of unlisted venture
funds that make technology-related investments. The majority of the
investments are managed by Nokia Growth Partners that specializes
ingrowth-stage investing, seeking companies that are changing the
face of mobility and connectivity.
At December 31, 2015, our unlisted venture fund investments equaled
EUR 953 million, as compared to EUR 778 million at December 31,
2014. Refer to Note 19, Fair value of nancial instruments, of our
consolidated nancial statements included in this annual report
forfurther information regarding fair value of our unlisted venture
fund investments.
At December 31, 2015, our venture fund commitments equaled
EUR230 million, as compared to EUR 274 million at December 31,
2014. As a limited partner in venture funds, we are committed to
capital contributions and entitled to cash distributions according
tothe respective partnership agreements and underlying fund
activities. Refer to Note 30, Commitments and contingencies, of
ourconsolidated nancial statements included in this annual report
for further information regarding commitments andcontingencies.
Liquidity and capital resources continued