Nokia 2010 Annual Report Download - page 122

The following table sets forth our total structured finance, outstanding and committed, for the years
indicated.
Structured Finance
2010 2009 2008
At December 31,
(EUR millions)
Financing commitments .............................................. 85 99 197
Outstanding longterm loans (net of allowances and writeoffs) .............. 64 46 27
Current portion of outstanding longterm loans (net of allowances and
writeoffs) ....................................................... 39 14 101
Outstanding financial guarantees and securities pledged .................... — — 2
Total.............................................................. 188 159 327
In 2010, our total structured financing, outstanding and committed, increased to EUR 188 million
from EUR 159 million in 2009 and primarily consisted of outstanding longterm loans to network
operators.
In 2009, our total structured financing, outstanding and committed, decreased to EUR 159 million
from EUR 327 million in 2008 and primarily consisted of committed financing to network operators.
See Note 35(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.
The structured financing commitments are available under loan facilities mainly negotiated with
customers of Nokia Siemens Networks. Availability of the amounts is dependent upon the borrowers’
continuing compliance with stated financial and operational covenants and compliance with other
administrative terms of the facilities. The customer loans are available to fund capital expenditure
relating to the purchase of network infrastructure equipment and services from Nokia Siemens
Networks.
The following table sets forth the amounts of our contingent commitments for the periods indicated
as at December 31, 2010. The amounts represent the maximum principal amount of commitments.
Contingent Commitments Expiration Per Period
2011 20122013 20142015 Thereafter Total
(EUR millions)
Guarantees of Nokia’s performance ............. 640 149 56 139 984
Guarantees of Nokia’s performance consist of EUR 984 million of guarantees that are provided to
certain Nokia Siemens Networks customers in the form of bank guarantees, or corporate guarantees
issued by Nokia Siemens Networks’ Group entity. These instruments entitle the customer to claim
payment as compensation for nonperformance by Nokia Siemens Networks of its obligations under
network infrastructure supply agreements. Depending on the nature of the instrument, compensation
is payable either on demand, or subject to verification of nonperformance.
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