##### Table of Contents








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##### 



Nokia Siemens Networks 
Consolidated Financial Statements 2009
 Report
of Independent Registered Public Accounting Firm
    
    
    2Consolidated Financial Statements 2009Consolidated Income Statement
    
    
    3Consolidated Statement of Comprehensive Income
    
    
    4Consolidated Statement of Financial Position
    
    
    5Consolidated Statement of Cash Flows
    
    
    6Consolidated Statement of Changes in Shareholders Equity
    
    
    7Notes to the Consolidated Financial Statements
    
    
    8
 Contents          1




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##### Table of Contents



Report of Independent Registered Public Accounting Firm
 To the Board of Directors and Shareholders of Nokia Siemens Networks B.V.
  
 2          Nokia
Siemens Networks in 2009




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##### Table of Contents



Nokia Siemens Networks  Consolidated Income Statement
 2009
    
    
    2008
    
    
    20071For the year ended December 31
    
    Notes
    
    
    EURm
    
    
    EURm
    
    
    EURmNet sales
    
    
    4
    
    
    
    12 574
    
    
    
    15 309
    
    
    
    11 696Cost of sales
    
    
    5, 9, 17
    
    
    
    (9 113
    )
    
    
    (11 042
    )
    
    
    (8 763
    )Gross profit
    
    
    
    
    
    
    3 461
    
    
    
    4 267
    
    
    
    2 933Research and development expenses
    
    
    5, 9
    
    
    
    (2 267
    )
    
    
    (2 470
    )
    
    
    (2 489
    )Selling and marketing expenses
    
    
    5, 9
    
    
    
    (1 348
    )
    
    
    (1 411
    )
    
    
    (1 285
    )Administrative and general expenses
    
    
    5, 9
    
    
    
    (573
    )
    
    
    (683
    )
    
    
    (566
    )Impairment of goodwill
    
    
    8
    
    
    
    (1 609
    )
    
    
    
    
    
    
    Other income
    
    
    5, 7
    
    
    
    131
    
    
    
    228
    
    
    
    120Other expenses
    
    
    7
    
    
    
    (81
    )
    
    
    (234
    )
    
    
    (165
    )Operating loss
    
    
    
    
    
    
    (2 286
    )
    
    
    (303
    )
    
    
    (1 452
    )Share of results of associated companies
    
    
    14, 32
    
    
    
    32
    
    
    
    (13
    )
    
    
    4Financial income and expenses
    
    
    10
    
    
    
    (182
    )
    
    
    (148
    )
    
    
    (51
    )Loss before tax
    
    
    
    
    
    
    (2 436
    )
    
    
    (464
    )
    
    
    (1 499
    )Income tax (expense)/benefit
    
    
    11
    
    
    
    (371
    )
    
    
    162
    
    
    
    425Loss for the period
    
    
    
    
    
    
    (2 807
    )
    
    
    (302
    )
    
    
    (1 074
    )Attributable to:Equity holders of the parent
    
    
    
    
    
    
    (2 815
    )
    
    
    (337
    )
    
    
    (1 104
    )Minority interest
    
    
    
    
    
    
    8
    
    
    
    35
    
    
    
    30
 1
    
    Represents a nine-month period
through December 31, 2007 as the
Group commenced operations on April
1, 2007.The notes are an integral part of these consolidated financial statements.
 Consolidated

Financial Statements          3




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Nokia Siemens Networks  Consolidated Statement of  Comprehensive Income
 2009
    
    
    2008
    
    
    20071For the year ended December 31
    
    Notes
    
    
    EURm
    
    
    EURm
    
    
    EURmLoss for the period
    
    
    
    
    
    
    (2 807
    )
    
    
    (302
    )
    
    
    (1 074
    )Other comprehensive incomeTranslation differences
    
    
    20
    
    
    
    (25
    )
    
    
    (2
    )
    
    
    34Cash flow hedges
    
    
    21
    
    
    
    133
    
    
    
    (179
    )
    
    
    15Available-for-sale investments
    
    
    21
    
    
    
    4
    
    
    
    (6
    )
    
    
    1Other (decrease)/increase
    
    
    
    
    
    
    (2
    )
    
    
    (14
    )
    
    
    9Income tax related to components of other
comprehensive income
    
    
    20, 21
    
    
    
    (34
    )
    
    
    48
    
    
    
    (4
    )Other comprehensive income/(expense), net of tax

    
    
    
    76
    
    
    
    (153
    )
    
    
    55Total comprehensive loss for the period
    
    
    
    
    
    
    (2 731
    )
    
    
    (455
    )
    
    
    (1 019
    )Attributable to:Equity holders of the parent
    
    
    
    
    
    
    (2 729
    )
    
    
    (493
    )
    
    
    (1 046
    )Minority interest
    
    
    
    
    
    
    (2
    )
    
    
    38
    
    
    
    27
 1
    
    Represents a nine-month period through December 31, 2007 as the Group commenced operations on April 1, 2007.The notes are an integral part of these consolidated financial statements.
 4          Nokia
Siemens Networks in 2009




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##### Table of Contents



Nokia Siemens Networks  Consolidated Statement of  Financial Position
 2009
    
    
    2008As at December 31
    
    Notes
    
    
    EURm
    
    
    EURmASSETSNon-current assetsCapitalized development costs
    
    
    12
    
    
    
    131
    
    
    
    224Goodwill
    
    
    2, 8, 12
    
    
    
    
    
    
    
    1 606Other intangible assets
    
    
    12
    
    
    
    1 184
    
    
    
    1 686Property, plant and equipment
    
    
    13
    
    
    
    521
    
    
    
    554Investments in associated companies
    
    
    14
    
    
    
    26
    
    
    
    62Investments in other companies
    
    
    
    
    
    
    1
    
    
    
    3Deferred tax assets
    
    
    25
    
    
    
    678
    
    
    
    1 123Long-term loans receivable
    
    
    15, 33
    
    
    
    48
    
    
    
    31Available-for-sale investments
    
    
    15
    
    
    
    16
    
    
    
    172 605
    
    
    
    5 306Current assetsInventories
    
    
    17, 19
    
    
    
    902
    
    
    
    1 297Accounts receivable, net of allowances for
doubtful accounts
    
    
    15, 19, 31, 33
    
    
    
    5 787
    
    
    
    6 813Prepaid expenses and accrued income
    
    
    18
    
    
    
    1 096
    
    
    
    1 281Current portion of long-term loans receivable
    
    
    15, 33
    
    
    
    14
    
    
    
    102Other financial assets
    
    
    15, 33
    
    
    
    269
    
    
    
    530Available-for-sale investments, liquid assets
    
    
    15, 33
    
    
    
    34
    
    
    
    135Available-for-sale investments, cash equivalents
    
    
    15, 23, 33
    
    
    
    311
    
    
    
    709Bank and cash
    
    
    23
    
    
    
    449
    
    
    
    7578 862
    
    
    
    11 624Assets classified as held for sale
    
    
    30
    
    
    
    
    
    
    
    3Total assets
    
    
    
    
    
    
    11 467
    
    
    
    16 933EQUITY AND LIABILITIESEquity attributable to equity holders of the parentShare Capital
    
    
    22
    
    
    
    0
    
    
    
    0Share issue premium
    
    
    
    
    
    
    7 194
    
    
    
    7 194Translation differences
    
    
    20
    
    
    
    22
    
    
    
    35Fair value and other reserves
    
    
    21
    
    
    
    47
    
    
    
    (54
    )Accumulated deficit
    
    
    
    
    
    
    (4 288
    )
    
    
    (1 471
    )2 975
    
    
    
    5 704Minority interest
    
    
    
    
    
    
    119
    
    
    
    139Total equity
    
    
    23
    
    
    
    3 094
    
    
    
    5 843Non-current liabilitiesLong-term interest-bearing liabilities
    
    
    15, 33
    
    
    
    1 852
    
    
    
    1 252Deferred tax liabilities
    
    
    25
    
    
    
    315
    
    
    
    626Provisions
    
    
    27
    
    
    
    274
    
    
    
    244Other long-term liabilities
    
    
    6
    
    
    
    107
    
    
    
    962 548
    
    
    
    2 218Current liabilitiesCurrent portion of long-term loans
    
    
    15, 31, 33
    
    
    
    14
    
    
    
    53Short-term borrowings
    
    
    15, 31, 33
    
    
    
    324
    
    
    
    1 258Other financial liabilities
    
    
    15, 16
    
    
    
    56
    
    
    
    189Accounts payable
    
    
    15, 31, 33
    
    
    
    2 103
    
    
    
    2 636Accrued Expenses
    
    
    26
    
    
    
    2 750
    
    
    
    3 653Provisions
    
    
    27
    
    
    
    578
    
    
    
    1 0835 825
    
    
    
    8 872Total liabilities
    
    
    
    
    
    
    8 373
    
    
    
    11 090Total equity and liabilities
    
    
    
    
    
    
    11 467
    
    
    
    16 933
 The notes are an integral part of these consolidated financial statements.
 Nokia Siemens Networks in 2009          5




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Nokia Siemens Networks  Consolidated Statement of Cash Flows
 2009
    
    
    2008
    
    
    20071For the year ended December 31
    
    Notes
    
    
    EURm
    
    
    EURm
    
    
    EURmCash flow from operating activitiesLoss attributable to equity holders of the parent
    
    
    
    
    
    
    (2 815
    )
    
    
    (337
    )
    
    
    (1 104
    )Adjustments
    
    
    32
    
    
    
    3 240
    
    
    
    1 214
    
    
    
    1 281Profit attributable to equity holders of the parent
before change in net working capital
    
    
    
    
    
    
    425
    
    
    
    877
    
    
    
    177Change in net working capital
    
    
    32
    
    
    
    (227
    )
    
    
    (465
    )
    
    
    (797
    )Cash from/(used in) operations
    
    
    
    
    
    
    198
    
    
    
    412
    
    
    
    (620
    )Interest received
    
    
    
    
    
    
    25
    
    
    
    35
    
    
    
    10Interest paid
    
    
    
    
    
    
    (165
    )
    
    
    (64
    )
    
    
    (56
    )Other financial income and expenses, net
(paid)/received
    
    
    
    
    
    
    (76
    )
    
    
    35
    
    
    
    202Income taxes paid
    
    
    
    
    
    
    (337
    )
    
    
    (230
    )
    
    
    (162
    )Net cash (used in)/from operating activities
    
    
    
    
    
    
    (355
    )
    
    
    188
    
    
    
    (626
    )Cash flow from investing activitiesAcquisition of Group companies, net
of acquired cash
    
    
    
    
    
    
    
    
    
    
    (227
    )
    
    
    (12
    )Purchase of shares in associated companies
    
    
    
    
    
    
    (3
    )
    
    
    (12
    )
    
    
    Purchase of current available-for-sale
investments, liquid assets
    
    
    
    
    
    
    (3
    )
    
    
    (37
    )
    
    
    (210
    )Purchase of non-current available-for-sale
investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (8
    )Additions to capitalized development costs
    
    
    
    
    
    
    (26
    )
    
    
    (79
    )
    
    
    (67
    )Proceeds from/(investments in) other long-term
receivables
    
    
    
    
    
    
    1
    
    
    
    (1
    )
    
    
    4Proceeds from/(investments in) short-term loans
receivable
    
    
    
    
    
    
    84
    
    
    
    (195
    )
    
    
    66Capital expenditures
    
    
    
    
    
    
    (278
    )
    
    
    (287
    )
    
    
    (220
    )Disposal of shares in Group companies, net of
disposed cash
    
    
    
    
    
    
    
    
    
    
    (9
    )
    
    
    5Proceeds from disposal of shares in associated
companies
    
    
    
    
    
    
    38
    
    
    
    
    
    
    
    Proceeds from disposal of businesses
    
    
    
    
    
    
    18
    
    
    
    
    
    
    
    Proceeds from sale of current available-for-sale
investments, liquid assets
    
    
    
    
    
    
    106
    
    
    
    67
    
    
    
    68Proceeds from sale of non-current
available-for-sale investments
    
    
    
    
    
    
    3
    
    
    
    8
    
    
    
    8Proceeds from sale of property, plant and
equipment, and intangible assets
    
    
    
    
    
    
    63
    
    
    
    19
    
    
    
    79Net cash from/(used in) investing activities
    
    
    
    
    
    
    3
    
    
    
    (753
    )
    
    
    (287
    )Cash flow from financing activitiesProceeds of parents contributed to share issue
premium
    
    
    
    
    
    
    
    
    
    
    18
    
    
    
    566Proceeds from long-term borrowings
    
    
    
    
    
    
    753
    
    
    
    701
    
    
    
    114Repayment of long-term borrowings
    
    
    
    
    
    
    (208
    )
    
    
    (33
    )
    
    
    (19
    )(Repayments of)/proceeds from short-term borrowings

    
    
    
    (861
    )
    
    
    412
    
    
    
    562Dividends paid to minority interest
    
    
    
    
    
    
    (18
    )
    
    
    (14
    )
    
    
    (12
    )Dividends received from associated companies
    
    
    
    
    
    
    
    
    
    
    6
    
    
    
    12Net cash (used in)/from financing activities
    
    
    
    
    
    
    (334
    )
    
    
    1 090
    
    
    
    1 223Foreign exchange adjustment
    
    
    
    
    
    
    (20
    )
    
    
    (4
    )
    
    
    2Net (decrease)/increase in cash and cash
equivalents

    
    
    
    (706
    )
    
    
    521
    
    
    
    312Cash and cash equivalents at beginning of period

    
    
    
    1 466
    
    
    
    945
    
    
    
    633Cash and cash equivalents at end of period
    
    
    
    
    
    
    760
    
    
    
    1 466
    
    
    
    945Cash and cash equivalents comprise:Bank and cash
    
    
    
    
    
    
    449
    
    
    
    757
    
    
    
    895Current available-for-sale investments, cash
equivalents
    
    
    
    
    
    
    311
    
    
    
    709
    
    
    
    50760
    
    
    
    1 466
    
    
    
    945
 1
    
    Represents a nine-month period through December 31, 2007 as the Group commenced operations on
April 1, 2007.The figures in the Consolidated Statement of Cash Flows cannot be traced directly from the
Consolidated Statement of Financial Position without additional information as a result of
acquisitions and disposals of subsidiaries and net foreign exchange differences arising on
consolidation.The notes are an integral part of these consolidated financial statements.
 6          Nokia
Siemens Networks in 2009




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##### Table of Contents



Nokia Siemens Networks  Consolidated Statement of Changes in Shareholders Equity
 Attributable to owners of the parentShare
    
    
    
    
    
    
    Fair value
    
    
    Accum-
    
    
    BeforeNumber
    
    
    Share
    
    
    issue
    
    
    Translation
    
    
    and other
    
    
    ulated
    
    
    minority
    
    
    MinorityEURm
    
    Notes
    
    
    of shares
    
    
    capital1
    
    
    premium2
    
    
    differences
    
    
    reserves
    
    
    deficit
    
    
    interest
    
    
    interest
    
    
    TotalBalance at April 1, 2007
    
    
    
    
    
    
    100 073
    
    
    
    0
    
    
    
    7 172
    
    
    
    
    
    
    
    70
    
    
    
    
    
    
    
    7 242
    
    
    
    127
    
    
    
    7 369(Loss)/Profit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1 104
    )
    
    
    (1 104
    )
    
    
    30
    
    
    
    (1 074
    )Other comprehensive incomeCash flow hedges, net of tax
    
    
    21
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11
    
    
    
    
    
    
    
    11
    
    
    
    
    
    
    
    11Available-for-sale investments, net of tax
    
    
    21
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    1Currency translation differences, net of tax
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    40
    
    
    
    
    
    
    
    
    
    
    
    40
    
    
    
    (6
    )
    
    
    34Other increase, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6
    
    
    
    6
    
    
    
    3
    
    
    
    9Total comprehensive income/(expense) for the period

    
    
    
    
    
    
    
    
    
    
    
    40
    
    
    
    12
    
    
    
    (1 098
    )
    
    
    (1 046
    )
    
    
    27
    
    
    
    (1 019
    )Dividend
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12
    )
    
    
    (12
    )Equity contribution by minority shareholder
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    8Other changes in equity
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    
    
    
    
    2Balance at December 31, 2007
    
    
    
    
    
    
    100 073
    
    
    
    0
    
    
    
    7 174
    
    
    
    40
    
    
    
    82
    
    
    
    (1 098
    )
    
    
    6 198
    
    
    
    150
    
    
    
    6 348(Loss)/Profit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (337
    )
    
    
    (337
    )
    
    
    35
    
    
    
    (302
    )Other comprehensive incomeCash flow hedges, net of tax
    
    
    21
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (132
    )
    
    
    
    
    
    
    (132
    )
    
    
    
    
    
    
    (132
    )Available-for-sale investments, net of tax
    
    
    21
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4
    )
    
    
    
    
    
    
    (4
    )
    
    
    
    
    
    
    (4
    )Currency translation differences, net of tax
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5
    )
    
    
    
    
    
    
    
    
    
    
    (5
    )
    
    
    3
    
    
    
    (2
    )Other decrease, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (15
    )
    
    
    (15
    )
    
    
    
    
    
    
    (15
    )Total comprehensive (expense)/income for the period

    
    
    
    
    
    
    
    
    
    
    
    (5
    )
    
    
    (136
    )
    
    
    (352
    )
    
    
    (493
    )
    
    
    38
    
    
    
    (455
    )Dividend
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (14
    )
    
    
    (14
    )Additional parent contribution
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18
    
    
    
    
    
    
    
    18Disposal of subsidiaries
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (9
    )
    
    
    (9
    )
    
    
    (25
    )
    
    
    (34
    )Acquisitions and other changes in minority interests

    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12
    )
    
    
    (12
    )
    
    
    (10
    )
    
    
    (22
    )Other changes in equity
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    
    
    
    
    2Balance at December 31, 2008
    
    
    
    
    
    
    100 073
    
    
    
    0
    
    
    
    7 194
    
    
    
    35
    
    
    
    (54
    )
    
    
    (1 471
    )
    
    
    5 704
    
    
    
    139
    
    
    
    5 843(Loss)/Profit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2 815
    )
    
    
    (2 815
    )
    
    
    8
    
    
    
    (2 807
    )Other comprehensive incomeCash flow hedges, net of tax
    
    
    21
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    98
    
    
    
    
    
    
    
    98
    
    
    
    
    
    
    
    98Available-for-sale investments, net of tax
    
    
    21
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    
    
    
    
    3
    
    
    
    
    
    
    
    3Currency translation differences, net of tax
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (13
    )
    
    
    
    
    
    
    
    
    
    
    (13
    )
    
    
    (10
    )
    
    
    (23
    )Other decrease, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2
    )
    
    
    (2
    )
    
    
    
    
    
    
    (2
    )Total comprehensive (expense)/income for the period
    
    
    
    
    
    
    
    
    
    
    (13
    )
    
    
    101
    
    
    
    (2 817
    )
    
    
    (2 729
    )
    
    
    (2
    )
    
    
    (2 731
    )Dividend
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (18
    )
    
    
    (18
    )Balance at December 31, 2009
    
    
    
    
    
    
    100 073
    
    
    
    0
    
    
    
    7 194
    
    
    
    22
    
    
    
    47
    
    
    
    (4 288
    )
    
    
    2 975
    
    
    
    119
    
    
    
    3 094
 1
    
    Share capital comprises EUR 400 thousand of authorized shares of the Group.2
    
    Share issue premium includes contributions received from Nokia and Siemens,
as well as the fair value allocation related to the acquisition of Siemens carrier-related operations.The notes are an integral part of these consolidated financial statements.
 Nokia Siemens Networks in 2009          7




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##### Table of Contents



Notes to the Consolidated Financial Statements
  Adoption of pronouncements under IFRS
  
    
    Amendment to IFRS 2, Share-based Payment, Group and Treasury Share Transactions, clarifies
the definition of different vesting conditions, the treatment of all non-vesting conditions
and provides further guidance on the accounting treatment of cancellations by parties other
than the entity.
    
    Amendments to IFRS 7, Financial Instruments: Disclosures,
 require entities to provide additional disclosures about fair value measurements. The amendments
clarify the existing requirements for the disclosure of liquidity risk.
    
    IAS 1 (Revised), Presentation of Financial Statements, prompts entities to aggregate
information in the financial statements on the basis of shared characteristics. All non-owner
changes in equity (i.e. comprehensive income) should be presented either in one statement of
comprehensive income or in a separate income statement and statement of comprehensive income.
    
    Amendment to IAS 20, Accounting for Government Grants and disclosure of Government
Assistance, requires that the benefit of a below-market rate government loan is measured as
the difference between the carrying amount in accordance with IAS 39, Financial Instruments:
Recognition and Measurement, and the proceeds received, with the benefit accounted for in
accordance with IAS 20.
    
    Amendment to IAS 23, Borrowing Costs, changes the treatment of borrowing costs that are
directly attributable to an acquisition, construction or production of a qualifying asset.
These costs will consequently form part of the cost of that asset. Other borrowing costs are
recognized as an expense.
    
    Under the amended IAS 32, Financial Instruments: Presentation, the Group must classify
puttable financial instruments or instruments or components thereof that impose an obligation
to deliver to another party, a pro-rata share of net assets of the entity only on liquidation,
as equity. Previously, these instruments would have been classified as financial liabilities.
    
    Amendments to IFRIC 9, Reassessment of Embedded Derivatives and IAS 39 clarify the accounting
treatment of embedded derivatives when reclassifying financial instruments.
    
    IFRIC 13, Customer Loyalty Programs, addresses the accounting surrounding customer loyalty
programs and whether some consideration should be allocated to free goods or services provided
by a company. Consideration should be allocated to award credits based on their fair value, as
they are a separately identifiable component.
    
    IFRIC 15, Agreements for the Construction of Real Estate, helps entities determine whether a
particular construction agreement is within the scope of IAS 11, Construction Contracts, or
IAS 18, Revenue. At issue is whether such an agreement constitutes a construction contract
under IAS 11. If so, an entity should use the percentage-of-completion method to recognize
revenue. If not, the entity should account for the agreement under IAS 18.
    
    IFRIC 16, Hedges of a Net Investment in a Foreign Operation, clarifies the accounting
treatment in respect of net investment hedging. This includes the fact that net investment
hedging relates to differences in functional currency not presentation currency, and hedging
instruments may be held anywhere in the Group.
    
    IFRIC 18, Transfers of Assets from Customers, clarifies the requirements for agreements in
which an entity receives an item of property, plant and equipment or cash it is required to
use to construct or acquire an item of property, plant and equipment that must be used to
provide access to a supply of goods or services.
    
    In addition, a number of other amendments that form part of the IASBs annual improvement
project were adopted by the Group.
   8          Nokia
Siemens Networks in 2009




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##### Table of Contents



Notes to the Consolidated Financial Statements
  
 Functional and presentation currency
  Transactions in foreign currencies
  Foreign Group companies
   
 Notes
to the Consolidated Financial Statements          9




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##### Table of Contents



Notes to the Consolidated Financial Statements
  
 
   10         Nokia
Siemens Networks in 2009




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##### Table of Contents



Notes to the Consolidated Financial Statements
  Buildings and constructions
    
    20  33 yearsProduction machinery, measuring and

test equipment
    
    1  3 yearsOther machinery and equipment
    
    3  10 yearsLand and water areas are not depreciated.
         Available-for-sale investments
 Financial assets at fair value through profit and loss, liquid assets
   Notes to the Consolidated Financial Statements          11




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##### Table of Contents



Notes to the Consolidated Financial Statements
  Loans and receivables
   Cash and cash equivalents
   Loans payable
   Accounts payable
 Derivatives not designated in hedge accounting relationships carried at fair value through profit
and loss
        Cash flow hedges: Hedging of anticipated foreign currency denominated sales and purchases
   12          Nokia
Siemens Networks in 2009




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##### Table of Contents



Notes to the Consolidated Financial Statements
  Cash flow hedges: Hedging of cash flow variability on variable rate liabilities
 Warranty provisions
  Intellectual property rights (IPR) provisions
  Tax provisions
  Restructuring provisions
  Project related provisions
   Other provisions
   Notes to the Consolidated Financial Statements          13




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##### Table of Contents



Notes to the Consolidated Financial Statements
  
 Revenue recognition
  Customer financing
  Allowances for doubtful accounts
  Inventory-related allowances
  Warranty provisions
  Provision for intellectual property rights (IPR) infringements
   14          Nokia
Siemens Networks in 2009




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##### Table of Contents



Notes to the Consolidated Financial Statements
  Capitalized development costs
  Business combinations
  Assessment of the recoverability of long-lived and intangible assets and goodwill
  Fair value of derivatives and other financial instruments
  Income taxes
  Pensions
 Share-based compensation
    
    
    Amendments to IFRS 2, Share-based Payment, and IFRIC 11, Group and Treasury Share
Transactions, clarify that an entity that receives goods or services in a share-based payment
arrangement should account for those goods or services regardless of which entity in the group
settles the transaction, and regardless of whether the transaction is settled in shares or
cash.
    
    IFRS 3 (revised), Business Combinations, replaces IFRS 3 (as issued in 2004). The main
changes brought by IFRS 3 (revised) include clarification of the definition of a business,
immediate recognition of all acquisition-related costs in profit or loss, recognition of
subsequent changes in the fair value of contingent consideration in accordance with other
IFRSs and measurement of goodwill arising from step acquisitions at the acquisition date.
    
    IAS 27 (revised), Consolidated and Separate Financial Statements, clarifies presentation
of changes in parent-subsidiary ownership. Changes in a parents ownership interest in a
subsidiary that do not result in the loss of control must be accounted for exclusively in
equity. If a parent loses control of a subsidiary, it shall derecognize the consolidated
assets and liabilities, and any investment retained in the former subsidiary shall be
recognized at fair value at the date when control is lost. Any differences resulting from this
shall be recognized in profit or loss. When losses attributed to the minority
(non-controlling) interests exceed the minoritys interest in the subsidiarys equity, these
losses shall be allocated to the non-controlling interests even if this results in a deficit
balance.
    
    Amendment to IAS 32, Financial Instruments: Presentation requires that if rights issues
offered are issued pro rata to an entitys existing shareholders in the same class for a fixed
amount of currency, they should be classified as equity regardless of the currency in which
the exercise price is denominated.
    
    Amendments to IFRIC 14  IAS 19, The Limit on a Defined Benefit Asset, Minimum Funding
Requirements and their
   Notes to the Consolidated Financial Statements          15




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##### Table of Contents



Notes to the Consolidated Financial Statements
  Interaction, address the circumstances when an entity is subject to minimum funding
requirements and makes an early payment of contributions to cover those requirements. The amendment
permits such an entity to treat the benefit of such an early payment as an asset.
    
    IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments, clarifies the
requirements when an entity renegotiates the terms of a financial liability with its creditor
and the creditor agrees to accept the entitys equity instruments to settle the financial
liability fully or partially. The entitys equity instruments issued to a creditor are part of
the consideration paid to extinguish the financial liability and the issued instruments should
be measured at their fair value.
    
    IFRS 9, Financial Instruments, will change the classification, measurement and
impairment of financial instruments as well as hedge accounting based on an entitys
objectives for the related contractual cash flows.
 Siemens carrier-related operationsCarryingamount
    
    
    Fair value
    
    
    UsefulEURm
    
    
    EURm
    
    
    livesIntangible assets subject to amortization:Customer relationships
    
    
    
    
    
    
    1 290
    
    
    6 yearsDeveloped technology
    
    
    
    
    
    
    710
    
    
    4 yearsLicense to use trade name and trademark
    
    
    
    
    
    
    350
    
    
    5 yearsCapitalized development costs
    
    
    143
    
    
    
    154
    
    
    3 yearsOther intangible assets
    
    
    47
    
    
    
    47
    
    
    3-5 years190
    
    
    
    2 551Property, plant & equipment
    
    
    371
    
    
    
    344Deferred tax assets
    
    
    111
    
    
    
    181Other non-current assets
    
    
    153
    
    
    
    153Non-current assets
    
    
    825
    
    
    
    3 229Inventories
    
    
    1 010
    
    
    
    1 138Accounts receivable
    
    
    3 135
    
    
    
    3 087Prepaid expenses and accrued income
    
    
    870
    
    
    
    846Other financial assets
    
    
    55
    
    
    
    55Bank and cash
    
    
    382
    
    
    
    382Current Assets
    
    
    5 452
    
    
    
    5 508Total assets acquired
    
    
    6 277
    
    
    
    8 737Deferred tax liabilities
    
    
    171
    
    
    
    997Long-term interest-bearing liabilities
    
    
    34
    
    
    
    34Non-current liabilities
    
    
    205
    
    
    
    1 031Short-term borrowings
    
    
    231
    
    
    
    213Accounts payable
    
    
    1 539
    
    
    
    1 491Accrued expenses
    
    
    1 344
    
    
    
    1 502Provisions
    
    
    463
    
    
    
    397Current liabilities
    
    
    3 577
    
    
    
    3 603Total liabilities assumed
    
    
    3 782
    
    
    
    4 634Minority interest
    
    
    110
    
    
    
    108Net assets acquired
    
    
    2 385
    
    
    
    3 995Purchase price
    
    
    
    
    
    
    5 500Goodwill arising on formation ofNokia Siemens Networks
    
    
    
    
    
    
    1 505
   16          Nokia
Siemens Networks in 2009




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##### Table of Contents



Notes to the Consolidated Financial Statements
  Acquisitions effected in 2009
  Acquisitions effected in 2008
  Acquired Businesses
    
    Description of the business
    
    Type of acquisition
    
    Acquisition dateVivento Technical Services (VTS)
    
    Infrastructure services provider
    
    Asset purchase
    
    January 1, 2008Atrica Inc.
    
    Ethernet specialist and solutions
provider
    
    100% of shares
    
    January 7, 2008Apertio Ltd.
    
    Subscriber data platforms and
applications provider
    
    100% of shares
    
    February 11, 2008
  
 Carryingamount
    
    
    Fair value
    
    
    UsefulEURm
    
    
    EURm
    
    
    livesIntangible assets subject to amortization:Developed technology
    
    
    
    
    
    
    113
    
    
    5 yearsLicense to use tradename and trademark
    
    
    
    
    
    
    6
    
    
    5 yearsIntangible assets
    
    
    9
    
    
    
    2
    
    
    3-5 years9
    
    
    
    121Property, plant & equipment
    
    
    7
    
    
    
    5Deferred costs
    
    
    13
    
    
    
    Other non-current assets
    
    
    29
    
    
    
    210Non-current assets
    
    
    58
    
    
    
    336Inventories
    
    
    13
    
    
    
    13Accounts receivable
    
    
    11
    
    
    
    11Prepaid expenses and accrued income
    
    
    12
    
    
    
    7Bank and cash
    
    
    12
    
    
    
    12Current Assets
    
    
    48
    
    
    
    43Total assets acquired
    
    
    106
    
    
    
    379Deferred tax liabilities
    
    
    
    
    
    
    33Provisions
    
    
    
    
    
    
    180Other
    
    
    49
    
    
    
    32Non-current liabilities
    
    
    49
    
    
    
    245Short-term borrowings
    
    
    12
    
    
    
    12Accounts payable
    
    
    4
    
    
    
    4Accrued expenses
    
    
    25
    
    
    
    19Other long-term liabilities
    
    
    4
    
    
    
    4Current liabilities
    
    
    45
    
    
    
    39Total liabilities assumed
    
    
    94
    
    
    
    284Net assets acquired
    
    
    12
    
    
    
    95Goodwill on acquisition
    
    
    
    
    
    
    109Consideration paid (including acquisition
related costs of EUR 2 million)
    
    
    
    
    
    
    204Cash acquired
    
    
    
    
    
    
    12Net cash outflow for acquisitions
    
    
    
    
    
    
    192
   Notes to the Consolidated Financial Statements          17




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##### Table of Contents



Notes to the Consolidated Financial Statements
  Disposals effected in 2009 and 2008
    EURm
    
    2009
    
    
    2008Property, plant and equipment
    
    
    1
    
    
    
    8Inventories
    
    
    5
    
    
    
    42Accounts receivable
    
    
    16
    
    
    
    21Prepaid expenses and accrued income
    
    
    
    
    
    
    15Other financial assets
    
    
    
    
    
    
    30Bank and cash
    
    
    
    
    
    
    48Total assets disposed of
    
    
    22
    
    
    
    164Minority interest
    
    
    
    
    
    
    (25
    )Accounts payable
    
    
    
    
    
    
    (85
    )Accrued expenses
    
    
    (2
    )
    
    
    (20
    )Provisions
    
    
    (5
    )
    
    
    (4
    )Total liabilities disposed of
    
    
    (7
    )
    
    
    (134
    )
   1 396 million
 EURm
    
    2009
    
    
    2008
    
    
    2007Wages and salaries
    
    
    3 057
    
    
    
    2 936
    
    
    
    2 226Share-based compensation (income)/
expense, total
    
    
    (12
    )
    
    
    (19
    )
    
    
    100Pension expenses, net
    
    
    189
    
    
    
    148
    
    
    
    149Other social expenses
    
    
    380
    
    
    
    445
    
    
    
    329Personnel expenses
    
    
    3 614
    
    
    
    3 510
    
    
    
    2 804
   18          Nokia
Siemens Networks in 2009




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##### Table of Contents



Notes to the Consolidated Financial Statements
  EURm
    
    2009
    
    
    2008Present value of defined benefit
obligations at the beginning of year
    
    
    (822
    )
    
    
    (1 083
    )Foreign currency exchange rate changes
    
    
    
    
    
    
    11Current service cost
    
    
    (43
    )
    
    
    (55
    )Interest cost
    
    
    (48
    )
    
    
    (47
    )Plan participants contributions
    
    
    (11
    )
    
    
    (5
    )Past service cost loss
    
    
    
    
    
    
    (2
    )Actuarial (loss)/gain
    
    
    (77
    )
    
    
    48Business combinations
    
    
    2
    
    
    
    (7
    )Curtailments
    
    
    
    
    
    
    9Settlements
    
    
    
    
    
    
    290Benefits paid
    
    
    26
    
    
    
    22Other movements1
    
    
    9
    
    
    
    (3
    )Present value of defined benefit
obligations at end of year
    
    
    (964
    )
    
    
    (822
    )Plan assets at fair value at beginning of year
    
    
    847
    
    
    
    988Foreign currency exchange rate changes
    
    
    
    
    
    
    (6
    )Expected return on plan assets
    
    
    51
    
    
    
    44Actuarial gain/(loss) on plan assets
    
    
    42
    
    
    
    (15
    )Employer contribution
    
    
    28
    
    
    
    103Plan participants contributions
    
    
    11
    
    
    
    5Benefits paid
    
    
    (14
    )
    
    
    (10
    )Business combinations
    
    
    (1
    )
    
    
    6Curtailments
    
    
    
    
    
    
    (4
    )Settlements
    
    
    
    
    
    
    (266
    )Other movements1
    
    
    (9
    )
    
    
    2Plan assets at fair value at end of year
    
    
    955
    
    
    
    847(Deficit)/surplus
    
    
    (9
    )
    
    
    25Unrecognized past service cost
    
    
    1
    
    
    
    2Unrecognized net actuarial gains
    
    
    (62
    )
    
    
    (105
    )Amount not recognized as an asset in the
statement of financial position because of 
limit in IAS 19 paragraph 58(b)
    
    
    (5
    )
    
    
    Accrued pension cost in statement of 

financial position
    
    
    (75
    )
    
    
    (78
    )
 
 1
    
    The UK plan consists of several plans, one of which has been classified in 2009 as a defined
contribution plan as it does not include a requirement to provide a minimum level of benefits.
The impact is included in Other movements.
 EURm
    
    2009
    
    
    2008
    
    
    2007Current service cost
    
    
    43
    
    
    
    55
    
    
    
    63Interest cost
    
    
    48
    
    
    
    47
    
    
    
    40Expected return on plan assets
    
    
    (51
    )
    
    
    (44
    )
    
    
    (35
    )Net actuarial gains recognized in the year
    
    
    (8
    )
    
    
    (5
    )
    
    
    Past service cost (gain)/loss
    
    
    
    
    
    
    1
    
    
    
    Impact of IAS 19 paragraph 58(b)
    
    
    4
    
    
    
    
    
    
    
    Curtailments or settlements
    
    
    
    
    
    
    (70
    )
    
    
    (18
    )Total, included in personnel expenses
    
    
    36
    
    
    
    (16
    )
    
    
    50
  EURm
    
    2009
    
    
    2008Accrued pension cost as at beginning of year
    
    
    78
    
    
    
    212Net expense recognized in the income statement
    
    
    36
    
    
    
    (16
    )Contributions paid
    
    
    (28
    )
    
    
    (104
    )Benefits paid
    
    
    (13
    )
    
    
    (12
    )Business combinations
    
    
    1
    
    
    
    1Foreign currency exchange rate changes
    
    
    2
    
    
    
    (4
    )Other movements
    
    
    (1
    )
    
    
    1Accrued pension costs at end of year2
    
    
    75
    
    
    
    78
 
 2
    
    Included within Other long-term liabilities. EURm
    
    2009
    
    
    2008
    
    
    2007Present value of defined benefit obligation
    
    
    (964
    )
    
    
    (822
    )
    
    
    (1 083
    )Plan assets at fair value
    
    
    955
    
    
    
    847
    
    
    
    988(Deficit)/surplus
    
    
    (9
    )
    
    
    25
    
    
    
    (95
    )
   %
    
    2009
    
    
    2008Discount rate for determining present values
    
    
    5.29
    
    
    
    5.85Expected long-term rate of return on plan assets
    
    
    5.59
    
    
    
    6.04Annual rate of increase in future compensation levels
    
    
    2.57
    
    
    
    2.60Pension increases
    
    
    1.78
    
    
    
    1.75
   Notes to the Consolidated Financial Statements          19




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##### Table of Contents



Notes to the Consolidated Financial Statements
  %
    
    2009
    
    
    2008Asset Category:Equity securities
    
    
    21
    
    
    
    10Debt securities
    
    
    66
    
    
    
    76Insurance contracts
    
    
    5
    
    
    
    4Real estate
    
    
    2
    
    
    
    2Short-term investments
    
    
    6
    
    
    
    8Total
    
    
    100
    
    
    
    100
           Goodwill
 Other intangible assets
  Investments in associated and other companies
   Non-current assets and inventory
   20          Nokia
Siemens Networks in 2009




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##### Table of Contents



Notes to the Consolidated Financial Statements
  Capitalized development costs
   EURm
    
    2009
    
    
    2008
    
    
    2007Depreciation and amortization by
functionCost of sales
    
    
    77
    
    
    
    83
    
    
    
    66Research and development
    
    
    444
    
    
    
    467
    
    
    
    357Selling and marketing
    
    
    293
    
    
    
    294
    
    
    
    220Administrative and general
    
    
    46
    
    
    
    45
    
    
    
    34Total
    
    
    860
    
    
    
    889
    
    
    
    677
  EURm
    
    2009
    
    
    2008
    
    
    2007Interest income on available-for-sale 
financial instruments
    
    
    25
    
    
    
    32
    
    
    
    44Interest expense on financial liabilities

carried at amortized cost
    
    
    (145
    )
    
    
    (141
    )
    
    
    (61
    )Other financial income
    
    
    3
    
    
    
    9
    
    
    
    1Other financial expenses
    
    
    (10
    )
    
    
    (12
    )
    
    
    (7
    )Net foreign exchange gains/(losses):From foreign exchange derivatives

designated at fair value through profit 
and loss
    
    
    46
    
    
    
    (66
    )
    
    
    127From statement of financial position

items revaluation
    
    
    (101
    )
    
    
    30
    
    
    
    (155
    )Total
    
    
    (182
    )
    
    
    (148
    )
    
    
    (51
    )
  EURm
    
    2009
    
    
    2008
    
    
    2007Income tax expense/(benefit)Current tax
    
    
    272
    
    
    
    298
    
    
    
    334Deferred tax
    
    
    99
    
    
    
    (460
    )
    
    
    (759
    )Total
    
    
    371
    
    
    
    (162
    )
    
    
    (425
    )Netherlands
    
    
    17
    
    
    
    8
    
    
    
    11Other countries
    
    
    354
    
    
    
    (170
    )
    
    
    (436
    )Total
    
    
    371
    
    
    
    (162
    )
    
    
    (425
    )
 EURm
    
    2009
    
    
    2008
    
    
    2007Income tax expense/(benefit) at 
statutory rate
    
    
    (621
    )
    
    
    (118
    )
    
    
    (382
    )Permanent differences
    
    
    (22
    )
    
    
    (7
    )
    
    
    61Non tax deductible impairment of
goodwill
    
    
    424
    
    
    
    
    
    
    
    Taxes for prior years
    
    
    (6
    )
    
    
    (39
    )
    
    
    9Effect of different statutory tax rates in 
foreign subsidiaries
    
    
    2
    
    
    
    28
    
    
    
    (34
    )Net change in tax contingencies
    
    
    33
    
    
    
    7
    
    
    
    29Changes in income tax rates1
    
    
    3
    
    
    
    (19
    )
    
    
    (122
    )Valuation adjustments of deferred
tax assets2
    
    
    563
    
    
    
    (10
    )
    
    
    7Change of deferred tax liability on
undistributed earnings
    
    
    7
    
    
    
    
    
    
    
    10Other
    
    
    (12
    )
    
    
    (4
    )
    
    
    (3
    )Income tax expense/(benefit)
    
    
    371
    
    
    
    (162
    )
    
    
    (425
    )
 
 1
    
    In 2007, the statutory tax rate applicable to the business in Germany was reduced from 40%
to 32%. The impact of the change on the consolidated income statement through change in
deferred taxes was EUR 122 million (tax benefit).2
    
    In 2009, valuation adjustments consist mainly of non-recognition of deferred tax assets
related to current year losses (Refer to Note 25, Deferred taxes).
   Notes to the Consolidated Financial Statements          21




---



##### Table of Contents



Notes to the Consolidated Financial Statements
  EURm
    
    2009
    
    
    2008Capitalized development costsAcquisition cost January 1
    
    
    1 597
    
    
    
    1 531Additions during the period
    
    
    26
    
    
    
    79Impairment losses
    
    
    
    
    
    
    Disposals and retirements during the period
    
    
    (8
    )
    
    
    (13
    )Accumulated acquisition cost December 31
    
    
    1 615
    
    
    
    1 597Accumulated amortization January 1
    
    
    (1 373
    )
    
    
    (1 259
    )Disposals and retirements during the period
    
    
    8
    
    
    
    11Amortization for the period
    
    
    (119
    )
    
    
    (125
    )Accumulated amortization December 31
    
    
    (1 484
    )
    
    
    (1 373
    )Net book value January 1
    
    
    224
    
    
    
    272Net book value December 31
    
    
    131
    
    
    
    224GoodwillAcquisition cost January 1
    
    
    1 606
    
    
    
    1 505Translation differences
    
    
    (1
    )
    
    
    (8
    )Acquisitions
    
    
    4
    
    
    
    109Impairment losses
    
    
    (1 609
    )
    
    
    Accumulated acquisition cost December 31
    
    
    
    
    
    
    1 606Net book value January 1
    
    
    1 606
    
    
    
    1 505Net book value December 31
    
    
    
    
    
    
    1 606Other intangible assetsAcquisition cost January 1
    
    
    2 610
    
    
    
    2 571Translation differences
    
    
    (6
    )
    
    
    (4
    )Additions during the period
    
    
    20
    
    
    
    38Additions through business combinations
    
    
    
    
    
    
    121Impairment losses
    
    
    
    
    
    
    (1
    )Disposals and retirements during the period
    
    
    (9
    )
    
    
    (115
    )Accumulated acquisition cost December 31
    
    
    2 615
    
    
    
    2 610Accumulated amortization January 1
    
    
    (924
    )
    
    
    (466
    )Translation differences
    
    
    
    
    
    
    (2
    )Disposals and retirements during the period
    
    
    7
    
    
    
    76Impairment losses
    
    
    
    
    
    
    1Amortization for the period
    
    
    (514
    )
    
    
    (533
    )Accumulated amortization December 31
    
    
    (1 431
    )
    
    
    (924
    )Net book value January 1
    
    
    1 686
    
    
    
    2 105Net book value December 31
    
    
    1 184
    
    
    
    1 686
 EURm
    
    2009
    
    
    2008Land and water areasAcquisition cost January 1
    
    
    4
    
    
    
    7Impairment losses
    
    
    
    
    
    
    (2
    )Additions during the period
    
    
    
    
    
    
    1Disposals and retirements during the period
    
    
    (2
    )
    
    
    (2
    )Accumulated acquisition cost December 31
    
    
    2
    
    
    
    4Net book value January 1
    
    
    4
    
    
    
    7Net book value December 31
    
    
    2
    
    
    
    4Buildings and constructionsAcquisition cost January 1
    
    
    196
    
    
    
    136Translation differences
    
    
    (9
    )
    
    
    6Additions during the period
    
    
    71
    
    
    
    77Assets classified as held for sale
    
    
    
    
    
    
    (4
    )Impairment losses
    
    
    
    
    
    
    (7
    )Disposals and retirements during the period
    
    
    (63
    )
    
    
    (12
    )Accumulated acquisition cost December 31
    
    
    195
    
    
    
    196Accumulated depreciation January 1
    
    
    (46
    )
    
    
    (32
    )Translation differences
    
    
    2
    
    
    
    (1
    )Disposals and retirements during the period
    
    
    34
    
    
    
    6Assets classified as held for sale
    
    
    
    
    
    
    1Depreciation for the period
    
    
    (31
    )
    
    
    (20
    )Accumulated depreciation December 31
    
    
    (41
    )
    
    
    (46
    )Net book value January 1
    
    
    150
    
    
    
    104Net book value December 31
    
    
    154
    
    
    
    150Machinery and equipmentAcquisition cost January 1
    
    
    1 430
    
    
    
    1 395Translation differences
    
    
    (28
    )
    
    
    18Impairment losses
    
    
    (1
    )
    
    
    (21
    )Additions during the period
    
    
    203
    
    
    
    178Additions through business combinations
    
    
    1
    
    
    
    5Disposals and retirements during the period
    
    
    (213
    )
    
    
    (145
    )Accumulated acquisition cost December 31
    
    
    1 392
    
    
    
    1 430Accumulated depreciation January 1
    
    
    (1 074
    )
    
    
    (991
    )Translation differences
    
    
    22
    
    
    
    (15
    )Disposals and retirements during the period
    
    
    198
    
    
    
    135Depreciation for the period
    
    
    (196
    )
    
    
    (211
    )Impairment losses
    
    
    
    
    
    
    8Accumulated depreciation December 31
    
    
    (1 050
    )
    
    
    (1 074
    )Net book value January 1
    
    
    356
    
    
    
    404Net book value December 31
    
    
    342
    
    
    
    356Advance payments and fixed assets under
constructionNet carrying amount January 1
    
    
    44
    
    
    
    26Translation differences
    
    
    
    
    
    
    1Additions
    
    
    17
    
    
    
    31Disposals and retirements during the period
    
    
    (2
    )
    
    
    (4
    )Transfers to:Other intangible assets
    
    
    (6
    )
    
    
    (3
    )Buildings and constructions
    
    
    (11
    )
    
    
    Machinery and equipment
    
    
    (19
    )
    
    
    (7
    )Net carrying amount December 31
    
    
    23
    
    
    
    44Total property, plant and equipment
    
    
    521
    
    
    
    554
   22          Nokia
Siemens Networks in 2009




---



##### Table of Contents



Notes to the Consolidated Financial Statements
  EURm
    
    2009
    
    
    2008
    
    
    2007Net carrying amount January 1
    
    
    62
    
    
    
    58
    
    
    
    67Translation differences
    
    
    (4
    )
    
    
    (2
    )
    
    
    Additions
    
    
    3
    
    
    
    12
    
    
    
    Share of results
    
    
    15
    
    
    
    4
    
    
    
    4Dividends
    
    
    
    
    
    
    (6
    )
    
    
    (12
    )Impairment
    
    
    (10
    )
    
    
    (4
    )
    
    
    Disposals
    
    
    (38
    )
    
    
    
    
    
    
    Other movements
    
    
    (2
    )
    
    
    
    
    
    
    (1
    )Net carrying amount December 31
    
    
    26
    
    
    
    62
    
    
    
    58
 
   Notes to the Consolidated Financial Statements          23




---



##### Table of Contents



Notes to the Consolidated Financial Statements
   At December 31, 2009
    
    Carrying amountsFinancial assetsand financial
    
    
    Loans andCurrent available-
    
    
    Non-current
    
    
    liabilities at
    
    
    receivables
    
    
    Financial liabilitiesfor-sale financial
    
    
    available-for-sale
    
    
    fair value through
    
    
    measured at
    
    
    measured at
    
    
    Total carryingEURm
    
    assets
    
    
    financial assets
    
    
    profit or loss
    
    
    amortized cost
    
    
    amortized cost
    
    
    amounts
    
    
    Fair valueAvailable-for-sale investments in
publicly quoted
equity shares
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    2Other available-for-sale investments carried
at fair value
    
    
    14
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14
    
    
    
    14Long-term loans receivable
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    46
    
    
    
    
    
    
    
    46
    
    
    
    40Other non-current assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    
    
    
    
    2
    
    
    
    2Accounts receivable
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5 787
    
    
    
    
    
    
    
    5 787
    
    
    
    5 787Current portion of long-term loans receivable
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14
    
    
    
    
    
    
    
    14
    
    
    
    14Other current financial assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    161
    
    
    
    
    
    
    
    161
    
    
    
    161Derivative assets
    
    
    
    
    
    
    
    
    
    
    108
    
    
    
    
    
    
    
    
    
    
    
    108
    
    
    
    108Fixed income and money-market investments
carried at fair value
    
    
    345
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    345
    
    
    
    345Total financial assets
    
    
    345
    
    
    
    16
    
    
    
    108
    
    
    
    6 010
    
    
    
    
    
    
    
    6 479
    
    
    
    6 473Long-term interest-bearing liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1 852
    
    
    
    1 852
    
    
    
    1 852Current portion of long-term loans payable
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14
    
    
    
    14
    
    
    
    14Other long-term non-interest bearing
financial liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    2
    
    
    
    2Short-term borrowings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    324
    
    
    
    324
    
    
    
    324Derivative liabilities
    
    
    
    
    
    
    
    
    
    
    56
    
    
    
    
    
    
    
    
    
    
    
    56
    
    
    
    56Accounts payable
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2 103
    
    
    
    2 103
    
    
    
    2 103Total financial liabilities
    
    
    
    
    
    
    
    
    
    
    56
    
    
    
    
    
    
    
    4 295
    
    
    
    4 351
    
    
    
    4 351At December 31, 2008
    
    Carrying amountsFinancial assetsand financial
    
    
    Loans andCurrent available-
    
    
    Non-current
    
    
    liabilities at
    
    
    receivables
    
    
    Financial liabilitiesfor-sale financial
    
    
    available-for-sale
    
    
    fair value through
    
    
    measured at
    
    
    measured at
    
    
    Total carryingEURm
    
    assets
    
    
    financial assets
    
    
    profit or loss
    
    
    amortized cost
    
    
    amortized cost
    
    
    amounts
    
    
    Fair valueAvailable-for-sale investments
in publicly quoted
equity shares
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    2Other available-for-sale
investments carried at fair value
    
    
    15
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    15
    
    
    
    15Long-term loans receivable
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    27
    
    
    
    
    
    
    
    27
    
    
    
    24Other non-current assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    
    
    
    
    4
    
    
    
    4Accounts receivable
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6 813
    
    
    
    
    
    
    
    6 813
    
    
    
    6 813Current portion of long-term
loans receivable
    
    
    
    
    
    
    
    
    
    
    102
    
    
    
    
    
    
    
    102
    
    
    
    102Other current financial assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    252
    
    
    
    
    
    
    
    252
    
    
    
    252Derivative assets
    
    
    
    
    
    
    
    
    
    
    278
    
    
    
    
    
    
    
    
    
    
    
    278
    
    
    
    278Fixed income and money-market investments
carried at fair value
    
    
    844
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    844
    
    
    
    844Total financial assets
    
    
    844
    
    
    
    17
    
    
    
    278
    
    
    
    7 198
    
    
    
    
    
    
    
    8 337
    
    
    
    8 334Long-term interest-bearing liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1 252
    
    
    
    1 252
    
    
    
    1 252Current portion of long-term loans payable
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    53
    
    
    
    53
    
    
    
    53Other long-term non-interest bearing
financial liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    3
    
    
    
    3Short-term borrowings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1 258
    
    
    
    1 258
    
    
    
    1 258Derivative liabilities
    
    
    
    
    
    
    
    
    
    
    189
    
    
    
    
    
    
    
    
    
    
    
    189
    
    
    
    189Accounts payable
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2 636
    
    
    
    2 636
    
    
    
    2 636Total financial liabilities
    
    
    
    
    
    
    
    
    
    
    189
    
    
    
    
    
    
    
    5 202
    
    
    
    5 391
    
    
    
    5 391
    24          Nokia
Siemens Networks in 2009




---



##### Table of Contents



Notes to the Consolidated Financial Statements
 Fair value hierarchy
  At December 31, 2009
    
    Instruments with
    
    
    Valuation technique
    
    
    Valuation techniquequoted prices in
    
    
    using
    
    
    using non-active markets
    
    
    observable data
    
    
    observable dataEURm
    
    (Level 1
    )
    
    (Level 2
    )
    
    (Level 3
    )
    
    TotalFixed income and money-market investments carried at fair value
    
    
    345
    
    
    
    
    
    
    
    
    
    
    
    345Investments at fair value through profit and loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Available-for-sale investments in publicly quoted equity shares
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    2Other available-for-sale investments carried at fair value
    
    
    
    
    
    
    14
    
    
    
    
    
    
    
    14Derivative assets
    
    
    
    
    
    
    108
    
    
    
    
    
    
    
    108Total financial assets
    
    
    347
    
    
    
    122
    
    
    
    
    
    
    
    469Derivative liabilities
    
    
    
    
    
    
    56
    
    
    
    
    
    
    
    56Total financial liabilities
    
    
    
    
    
    
    56
    
    
    
    
    
    
    
    56
     2009
    
    Assets
    
    
    LiabilitiesFair
    
    
    
    
    
    
    FairEURm
    
    value
    1
    
    Notional
    2
    
    value
    1
    
    Notional
    2Cash flow hedges:Forward foreign exchange contracts
    
    
    18
    
    
    
    2 896
    
    
    
    (15
    )
    
    
    2 215Interest rate swaps
    
    
    
    
    
    
    
    
    
    
    (2
    )
    
    
    330Derivatives not designated in hedge
accounting
relationships carried at fair
value through profit and loss:Forward foreign exchange contracts
    
    
    89
    
    
    
    2 414
    
    
    
    (39
    )
    
    
    1 951Currency options bought
    
    
    1
    
    
    
    138
    
    
    
    
    
    
    
    Currency options sold
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    27108
    
    
    
    5 448
    
    
    
    (56
    )
    
    
    4 523
 2008
    
    Assets
    
    
    LiabilitiesFair
    
    
    
    
    
    
    FairEURm
    
    value
    1
    
    Notional
    2
    
    value
    1
    
    Notional
    2Cash flow hedges:Forward foreign exchange contracts
    
    
    113
    
    
    
    2 330
    
    
    
    (87
    )
    
    
    3 793Interest rate swaps
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Derivatives not designated in hedge accounting relationships carried at fair
value through profit and loss:Forward foreign exchange contracts
    
    
    165
    
    
    
    2 181
    
    
    
    (102
    )
    
    
    4 126Currency options bought
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Currency option sold
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    278
    
    
    
    4 511
    
    
    
    (189
    )
    
    
    7 919
 
 1
    
    The fair value of derivative financial instruments is included as an asset in Other financial
assets and as a liability in Other financial liabilities.2
    
    Includes the gross amount of all notional values for contracts that have not yet been settled
or cancelled. The amount of notional value outstanding is not necessarily a measure or
indication of market risk as the exposure of certain contracts may be offset by that of other
contracts. Notes to the Consolidated Financial Statements          25




---



##### Table of Contents



Notes to the Consolidated Financial Statements
  EURm
    
    2009
    
    
    2008
    
    
    2007Raw materials and supplies
    
    171
    
    
    212
    
    
    
    238Work in progress
    
    
    246
    
    
    
    329
    
    
    
    235Finished goods
    
    
    460
    
    
    
    711
    
    
    
    826Advances to suppliers
    
    
    25
    
    
    
    45
    
    
    
    63Total
    
    
    902
    
    
    
    1 297
    
    
    
    1 362
 
    Balance at
    
    
    Charged to cost
    
    
    
    
    
    
    Balance atbeginning of period
    
    
    and expenses
    
    
    Deductions
    1
    
    end of yearAllowances on assets to which they apply:
    
    EURm
    
    
    EURm
    
    
    EURm
    
    
    EURm20072Allowance for doubtful accounts
    
    
    203
    
    
    
    5
    
    
    
    (5
    )
    
    
    203Excess and obsolete inventory
    
    
    352
    
    
    
    54
    
    
    
    (62
    )
    
    
    3442008Allowance for doubtful accounts
    
    
    203
    
    
    
    68
    
    
    
    (90
    )
    
    
    181Excess and obsolete inventory
    
    
    344
    
    
    
    91
    
    
    
    (177
    )
    
    
    2582009Allowance for doubtful accounts
    
    
    181
    
    
    
    69
    
    
    
    (96
    )
    
    
    154Excess and obsolete inventory
    
    
    258
    
    
    
    121
    
    
    
    (107
    )
    
    
    272
 
 1
    
    Deductions include utilization and releases of the allowances.2
    
    Represents a nine-month period through December 31, 2007 as the Group commenced operations on
April 1, 2007.  EURm
    
    Gross
    
    
    Tax
    
    
    NetBalance at April 1, 2007
    
    
    
    
    
    
    
    
    
    
    Exchange differences on translating

foreign operations
    
    
    34
    
    
    
    
    
    
    
    34Reclassification of (gains)/losses to

income statement
    
    
    
    
    
    
    
    
    
    
    Attributable to minority interest1
    
    
    (6
    )
    
    
    
    
    
    
    (6
    )Balance at December 31, 2007
    
    
    40
    
    
    
    
    
    
    
    40Exchange differences on translating

foreign operations
    
    
    (2
    )
    
    
    
    
    
    
    (2
    )Reclassification of (gains)/losses to

income statement
    
    
    
    
    
    
    
    
    
    
    Attributable to minority interest1
    
    
    3
    
    
    
    
    
    
    
    3Balance at December 31, 2008
    
    
    35
    
    
    
    
    
    
    
    35Exchange differences on translating

foreign operations
    
    
    (28
    )
    
    
    2
    
    
    
    (26
    )Reclassification of (gains)/losses to

income statement
    
    
    3
    
    
    
    
    
    
    
    3Attributable to minority interest1
    
    
    (10
    )
    
    
    
    
    
    
    (10
    )Balance at December 31, 2009
    
    
    20
    
    
    
    2
    
    
    
    22
 
 1
    
    Deduct amounts attributable to minority interest.
 
   26          Nokia
Siemens Networks in 2009




---



##### Table of Contents



Notes to the Consolidated Financial Statements
  Available-for-saleHedging reserve
    
    
    investments
    
    
    TotalEURm
    
    Gross
    
    
    Tax
    
    
    Net
    
    
    Gross
    
    
    Tax
    
    
    Net
    
    
    Gross
    
    
    Tax
    
    
    NetBalance at April 1, 2007
    
    
    94
    
    
    
    (24
    )
    
    
    70
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    94
    
    
    
    (24
    )
    
    
    70Cash flow hedges:Net fair value gains/(losses)
    
    
    149
    
    
    
    (39
    )
    
    
    110
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    149
    
    
    
    (39
    )
    
    
    110Transfer of (gains)/losses to income statement as
adjustment to Net Sales
    
    
    (213
    )
    
    
    56
    
    
    
    (157
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (213
    )
    
    
    56
    
    
    
    (157
    )Transfer of losses/(gains) to income statement as
adjustment to Cost of Sales
    
    
    80
    
    
    
    (22
    )
    
    
    58
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    80
    
    
    
    (22
    )
    
    
    58Available-for-sale investments:Net fair value gains/(losses)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    1
    
    
    
    1
    
    
    
    
    
    
    
    1Balance at December 31, 2007
    
    
    110
    
    
    
    (29
    )
    
    
    81
    
    
    
    1
    
    
    
    
    
    
    
    1
    
    
    
    111
    
    
    
    (29
    )
    
    
    82Cash flow hedges:Net fair value (losses)/gains
    
    
    (62
    )
    
    
    16
    
    
    
    (46
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (62
    )
    
    
    16
    
    
    
    (46
    )Transfer of (gains)/losses to income statement as
adjustment to Net Sales
    
    
    (253
    )
    
    
    66
    
    
    
    (187
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (253
    )
    
    
    66
    
    
    
    (187
    )Transfer of losses/(gains) to income statement as
adjustment to Cost of Sales
    
    
    136
    
    
    
    (35
    )
    
    
    101
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    136
    
    
    
    (35
    )
    
    
    101Available-for-sale investments:Net fair value gains/(losses)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5
    )
    
    
    1
    
    
    
    (4
    )
    
    
    (5
    )
    
    
    1
    
    
    
    (4
    )Balance at December 31, 2008
    
    
    (69
    )
    
    
    18
    
    
    
    (51
    )
    
    
    (4
    )
    
    
    1
    
    
    
    (3
    )
    
    
    (73
    )
    
    
    19
    
    
    
    (54
    )Cash flow hedges:Net fair value gains/(losses)
    
    
    34
    
    
    
    (9
    )
    
    
    25
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    34
    
    
    
    (9
    )
    
    
    25Transfer of losses/(gains) to income statement as
adjustment to Net Sales
    
    
    173
    
    
    
    (45
    )
    
    
    128
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    173
    
    
    
    (45
    )
    
    
    128Transfer of (gains)/losses to income statement as
adjustment to Cost of Sales
    
    
    (74
    )
    
    
    19
    
    
    
    (55
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (74
    )
    
    
    19
    
    
    
    (55
    )Available-for-sale investments:Net fair value gains/(losses)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    (1
    )
    
    
    3
    
    
    
    4
    
    
    
    (1
    )
    
    
    3Balance at December 31, 2009
    
    
    64
    
    
    
    (17
    )
    
    
    47
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    64
    
    
    
    (17
    )
    
    
    47
  
 
   Notes to the Consolidated Financial Statements          27




---



##### Table of Contents



Notes to the Consolidated Financial Statements
  Votesin theShare
    
    Number
    
    
    Generalclass
    
    of shares
    
    
    MeetingsClass A
    
    
    49 999
    
    
    
    4Class B
    
    
    49 999
    
    
    
    4Class C
    
    
    25
    
    
    
    4Class D
    
    
    50
    
    
    
    1
 EURm
    
    2009
    
    
    2008Total borrowings1
    
    
    2 028
    
    
    
    2 319Less: cash and cash equivalents
    
    
    760
    
    
    
    1 466Net Debt
    
    
    1 268
    
    
    
    853Total Equity2
    
    
    3 094
    
    
    
    5 843Total Capital
    
    
    4 362
    
    
    
    6 696Gearing Ratio
    
    
    29%
    
    
    
    13%
 
 1
    
    Total borrowings comprise long-term interest bearing liabilities, the current portion of
long-term loans and short-term borrowings. In 2009, total borrowings are offset by short-term
deposits of EUR 162 million (EUR 244 million in 2008) that were provided by the Group to
Nokia. Refer to Note 31, Related party transactions.2
    
    Total equity comprises all capital and reserves of the Group.
   28          Nokia
Siemens Networks in 2009




---



##### Table of Contents



Notes to the Consolidated Financial Statements
  
 
     Vesting status
    2
    
    
    Exercise period(as percentageof totalPlan
    
    Stock
    
    
    Number of
    
    
    
    
    
    
    number of
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Exercise(year of
    
    options
    
    
    participants
    
    
    Option
    
    
    stock options
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    price/sharelaunch)
    
    outstanding
    
    
    (approx.)
    
    
    (sub)category
    
    
    outstanding)
    
    
    
    First vest date
    
    Last vest date
    
    Expiry date
    
    
    EUR20031
    
    
    931 781
    
    
    
    1 000
    
    
    
    2Q04
    
    
    Expired
    
    
    
    July 1, 2005
    
    July 1, 2008
    
    December 31, 2009
    
    
    
    11.793Q04
    
    
    Expired
    
    
    
    October 3, 2005
    
    October 1, 2008
    
    December 31, 2009
    
    
    
    9.444Q04
    
    
    Expired
    
    
    
    January 2, 2006
    
    January 2, 2009
    
    December 31, 2009
    
    
    
    12.3520051
    
    
    3 927 946
    
    
    
    3 000
    
    
    
    2Q05
    
    
    
    100.00
    
    
    
    July 1, 2006
    
    July 1, 2009
    
    December 31, 2010
    
    
    
    12.793Q05
    
    
    
    100.00
    
    
    
    October 1, 2006
    
    October 1, 2009
    
    December 31, 2010
    
    
    
    13.094Q05
    
    
    
    93.75
    
    
    
    January 1, 2007
    
    January 1, 2010
    
    December 31, 2010
    
    
    
    14.481Q06
    
    
    
    87.50
    
    
    
    April 1, 2007
    
    April 1, 2010
    
    December 31, 2011
    
    
    
    14.992Q06
    
    
    
    81.25
    
    
    
    July 1, 2007
    
    July 1, 2010
    
    December 31, 2011
    
    
    
    18.023Q06
    
    
    
    75.00
    
    
    
    October 1, 2007
    
    October 1, 2010
    
    December 31, 2011
    
    
    
    15.374Q06
    
    
    
    68.75
    
    
    
    January 1, 2008
    
    January 1, 2011
    
    December 31, 2011
    
    
    
    15.3820071
    
    
    7 115
    
    
    
    10
    
    
    
    2Q07
    
    
    
    56.25
    
    
    
    July 1, 2008
    
    July 1, 2011
    
    December 31, 2012
    
    
    
    18.392Q08
    
    
    
    31.25
    
    
    
    July 1, 2009
    
    July 1, 2012
    
    December 31, 2013
    
    
    
    19.16
 
 1
    
    The Groups current global stock option plans have a vesting schedule with 25% vesting one
year after grant, and quarterly vesting thereafter, each of the quarterly lots representing
6.25% of the total award. The awards vest fully in four years.2
    
    The total intrinsic value of vested global stock option plans at December 31, 2009 is EUR 12
million (EUR 7 million in 2008).  Weighted average
    
    
    Weighted averageNumber of shares
    
    
    exercise price EUR
    
    
    share price EUR2Shares under option at April 1, 2007
    
    
    16 106 803
    
    
    
    14.90Net transfers1
    
    
    84 851Exercised
    
    
    4 295 629
    
    
    
    14.58
    
    
    
    22.38Forfeited
    
    
    303 986
    
    
    
    15.34Shares under option at December 31, 2007
    
    
    11 422 337
    
    
    
    15.01Net transfers1
    
    
    43 981Exercised
    
    
    1 290 516
    
    
    
    14.58
    
    
    
    21.99Forfeited
    
    
    224 783
    
    
    
    16.15Expired
    
    
    4 620 067
    
    
    
    14.95Shares under option at December 31, 2008
    
    
    5 242 990Net transfers1
    
    
    15 178Exercised
    
    
    
    
    
    
    
    
    
    
    N/AForfeited
    
    
    112 819
    
    
    
    17.03Expired
    
    
    1 179 932
    
    
    
    14.51Shares under option at December 31, 2009
    
    
    3 935 061Options exercisable at December 31, 2009 (shares)
    
    
    3 486 932
    
    
    
    15.66Options exercisable at December 31, 2008 (shares)
    
    
    3 911 850
    
    
    
    15.14Options exercisable at December 31, 2007 (shares)
    
    
    7 892 273
    
    
    
    14.66
 
 1
    
    Net transfers include movements of employees between Nokia and Nokia Siemens Networks as the
global stock options do not forfeit upon changes of employment between Nokia and Nokia Siemens
Networks.2
    
    In 2007 and 2008 the weighted average share price reflects the price during the period, as
options were exercised on a regular basis throughout the period. There were no material
exercises during 2009 and as such no weighted average share price is provided.




---



##### Table of Contents



Notes to the Consolidated Financial Statements
  Options outstandingWeighted averageremainingcontractual life
    
    
    Weighted averageExercise prices, EUR
    
    Number of shares
    
    
    in years
    
    
    exercise price EUR12.79-13.09
    
    
    1 547 081
    
    
    
    1.0
    
    
    
    12.9714.48-15.38
    
    
    58 544
    
    
    
    1.8
    
    
    
    15.0318.02-19.16
    
    
    2 329 436
    
    
    
    2.0
    
    
    
    18.023 935 061
  
 
    Performance
    
    
    Number of
    
    
    Interimshares
    
    
    participants
    
    
    measurement
    
    
    Performance
    
    
    1st (interim)
    
    
    2nd (final)Plan
    
    outstanding
    
    
    (approx.)
    
    
    period
    
    
    period
    
    
    settlement
    
    
    settlement2005
    
    
    
    
    
    
    4 000
    
    
    
    2005-2006
    
    
    
    2005-2008
    
    
    
    2007
    
    
    
    20092006
    
    
    
    
    
    
    5 000
    
    
    
    N/A
    
    
    
    2006-2008
    
    
    
    N/A
    
    
    
    2009
  Threshold Performance
    
    
    Maximum PerformanceAverage annual
    
    
    
    
    
    
    Average annualPlan
    
    
    
    
    
    EPS1/EUR
    
    
    net sales growth1
    
    
    EPS1/EUR
    
    
    net sales growth12005
    
    Interim
    
    
    0.75
    
    
    
    3%
    
    
    
    0.96
    
    
    12
    %Performance period
    
    
    0.82
    
    
    
    8%
    
    
    
    1.33
    
    
    17
    %2006
    
    Performance period
    
    
    0.96
    
    
    
    11%
    
    
    
    1.41
    
    
    26
    %
 
 1
    
    Both the EPS and Average annual net sales growth criteria have an equal weight of 50%.




---



##### Table of Contents



Notes to the Consolidated Financial Statements
  EURm
    
    2009
    
    
    2008Deferred tax assets:Inter-company profit in inventory
    
    
    60
    
    
    
    128Tax losses carried forward
    
    
    96
    
    
    
    130Provisions
    
    
    154
    
    
    
    256Fair value gains and losses
    
    
    15
    
    
    
    19Non-current assets
    
    
    86
    
    
    
    220Valuation differences on inventory
    
    
    194
    
    
    
    222Short-term investments
    
    
    199
    
    
    
    176Current receivables
    
    
    206
    
    
    
    286Share-based compensation
    
    
    3
    
    
    
    19Other temporary differences
    
    
    
    
    
    
    35Reclassification due to netting of deferred
taxes on company level
    
    
    (335
    )
    
    
    (368
    )Total deferred tax assets
    
    
    678
    
    
    
    1 123Deferred tax liabilities:Non-current assets
    
    
    (9
    )
    
    
    (31
    )Fair value gains and losses
    
    
    (50
    )
    
    
    Undistributed earnings
    
    
    (10
    )
    
    
    (3
    )Valuation differences on inventory
    
    
    (1
    )
    
    
    (10
    )Current receivables
    
    
    (206
    )
    
    
    (362
    )Provisions
    
    
    (179
    )
    
    
    (163
    )Purchase price allocation adjustments on
inventory and intangible assets
    
    
    (195
    )
    
    
    (365
    )Other temporary differences
    
    
    
    
    
    
    (60
    )Reclassification due to netting of deferred
taxes on company level
    
    
    335
    
    
    
    368Total deferred tax liabilities
    
    
    (315
    )
    
    
    (626
    )Net deferred tax asset
    
    
    363
    
    
    
    497Tax (charged)/credited to other comprehensive
income at period end
    
    
    (17
    )
    
    
    19
 EURm
    
    2009
    
    
    2008Social security, VAT and other taxes
    
    
    525
    
    
    
    816Wages and salaries
    
    
    210
    
    
    
    406Billings in excess of costs incurred1
    
    
    451
    
    
    
    677Advance payments
    
    
    528
    
    
    
    506Other accrued expenses
    
    
    1 036
    
    
    
    1 248Total
    
    
    2 750
    
    
    
    3 653
 
 1
    
    Refer to Note 4, Revenue recognition.




---



##### Table of Contents



Notes to the Consolidated Financial Statements
  OtherWarranty
    
    
    IPR
    
    
    
    
    
    
    
    
    
    
    Product
    
    
    projectEURm
    
    and Retrofit
    
    
    infringements
    
    
    Tax
    
    
    Restructuring
    
    
    portfolio
    
    
    losses
    
    
    Other
    
    
    TotalAt January 1, 2008
    
    
    275
    
    
    
    39
    
    
    
    29
    
    
    
    441
    
    
    
    53
    
    
    
    97
    
    
    
    126
    
    
    
    1 060Additional provisions
    
    
    72
    
    
    
    19
    
    
    
    7
    
    
    
    212
    
    
    
    391
    
    
    
    408
    
    
    
    123
    
    
    
    1 232Changes in estimates
    
    
    (74
    )
    
    
    (19
    )
    
    
    
    
    
    
    (210
    )
    
    
    (13
    )
    
    
    (41
    )
    
    
    (80
    )
    
    
    (437
    )Charged to income statement
    
    
    (2
    )
    
    
    
    
    
    
    7
    
    
    
    2
    
    
    
    378
    
    
    
    367
    
    
    
    43
    
    
    
    795Other changes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    153
    
    
    
    153Utilized during year
    
    
    (34
    )
    
    
    (5
    )
    
    
    
    
    
    
    (180
    )
    
    
    (154
    )
    
    
    (219
    )
    
    
    (89
    )
    
    
    (681
    )At December 31, 2008
    
    
    239
    
    
    
    34
    
    
    
    36
    
    
    
    263
    
    
    
    277
    
    
    
    245
    
    
    
    233
    
    
    
    1 327At January 1, 2009
    
    
    239
    
    
    
    34
    
    
    
    36
    
    
    
    263
    
    
    
    277
    
    
    
    245
    
    
    
    233
    
    
    
    1 327Additional provisions
    
    
    52
    
    
    
    6
    
    
    
    33
    
    
    
    60
    
    
    
    60
    
    
    
    269
    
    
    
    184
    
    
    
    664Changes in estimates
    
    
    (110
    )
    
    
    (10
    )
    
    
    
    
    
    
    (44
    )
    
    
    (68
    )
    
    
    (63
    )
    
    
    (67
    )
    
    
    (362
    )Charged to income statement
    
    
    (58
    )
    
    
    (4
    )
    
    
    33
    
    
    
    16
    
    
    
    (8
    )
    
    
    206
    
    
    
    117
    
    
    
    302Other changes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (41
    )
    
    
    (41
    )Utilized during year
    
    
    (78
    )
    
    
    (2
    )
    
    
    
    
    
    
    (177
    )
    
    
    (149
    )
    
    
    (254
    )
    
    
    (76
    )
    
    
    (736
    )At December 31, 2009
    
    
    103
    
    
    
    28
    
    
    
    69
    
    
    
    102
    
    
    
    120
    
    
    
    197
    
    
    
    233
    
    
    
    852
  EURm
    
    2009
    
    
    2008Analysis of total provisions at December 31:Non-current
    
    
    274
    
    
    
    244Current
    
    
    578
    
    
    
    1 083




---



##### Table of Contents



Notes to the Consolidated Financial Statements
  EURm
    
    2009
    
    
    2008Collateral for the Groups commitmentsAssets pledged
    
    
    3
    
    
    
    Contingent liabilities on behalf of Group companiesOther guarantees
    
    
    1 162
    
    
    
    2 772Contingent liabilities on behalf of other companiesOther guarantees
    
    
    2
    
    
    
    Financing commitmentsCustomer finance commitments1
    
    
    92
    
    
    
    192
 
 1
    
    Refer to Note 33, Risk management
 EURm
    
    
    
    
    
    Operating leasesLeasing payments
    
    
    2010
    
    
    
    2252011
    
    
    
    1792012
    
    
    
    1282013
    
    
    
    912014
    
    
    
    66Thereafter
    
    
    
    139Total
    
    
    
    828




---



##### Table of Contents



Notes to the Consolidated Financial Statements
  
 
  Loan orother financeliability balancesSales of goods
    
    
    Purchases of
    
    
    Amounts owed by
    
    
    Amounts owed to
    
    
    outstanding toor services
    
    
    goods or services
    
    
    related parties
    
    
    related parties
    
    
    shareholdersEURm
    
    2009
    
    
    2008
    
    
    20071
    
    
    2009
    
    
    2008
    
    
    20071
    
    
    2009
    
    
    2008
    
    
    2009
    
    
    2008
    
    
    2009
    
    
    2008Nokia
    
    
    6
    
    
    
    1
    
    
    
    12
    
    
    
    258
    
    
    
    267
    
    
    
    303
    
    
    
    193
    
    
    
    301
    
    
    
    321
    
    
    
    345
    
    
    
    910
    
    
    
    775Siemens
    
    
    95
    
    
    
    90
    
    
    
    63
    
    
    
    618
    
    
    
    719
    
    
    
    591
    
    
    
    34
    
    
    
    47
    
    
    
    49
    
    
    
    179
    
    
    
    776
    
    
    
    526
 
 1
    
    Represents the nine-month period through December 31, 2007 as the Group commenced operations
on April 1, 2007.  2009
    
    Amount of loanDescription of loans or other finance
    
    in the agreement
    
    
    Original
    
    
    Interest rate at
    
    
    Balance atreceivables and liabilities
    
    currency
    
    
    term
    
    
    December 31
    
    
    December 31Short-term deposit from Nokia Siemens Networks 
to Nokia to compensate the local borrowing from 
Nokia in China
    
    EUR 136 million
    
    
    9 days
    
    
    
    0.35%
    
    
    EUR 136 millionShort-term deposit from Nokia Siemens Networks 
to Nokia to compensate the local borrowing from 
Nokia in China
    
    VEF 81 million
    
    
    24  276 days
    
    
    
    3.0  6.0%
    
    
    EUR 26 millionShort-term loans from Nokia to Nokia Siemens 
Networks China
    
    CNY 1 600 million
    
    
    
    6 to 12 months
    
    
    
    4.4   4.8%
    
    
    EUR 160 millionLong-term loans from Nokia to Nokia Siemens
    
    EUR 500 million
    
    
    4 years 6 months
    
    
    
    1.6%
    
    
    EUR 500 millionNetworks Finance BV  maturing in April 2013
    
    EUR 250 million
    
    
    3 years 6 months
    
    
    
    8.2%
    
    
    EUR 250 millionLong-term loans from Siemens to Nokia Siemens
    
    EUR 500 million
    
    
    4 years 6 months
    
    
    
    1.6%
    
    
    EUR 500 millionNetworks Finance BV  maturing in April 2013
    
    EUR 250 million
    
    
    3 years 6 months
    
    
    
    8.2%
    
    
    EUR 250 million
 2008
    
    Amount of loanDescription of loans or other finance
    
    in the agreement
    
    
    Original
    
    
    Interest rate at
    
    
    Balance atreceivables and liabilities
    
    currency
    
    
    term
    
    
    December 31
    
    
    December 31Short-term deposit from Nokia Siemens Networks 
Finance BV to Nokia to compensate the local borrowing 
from Nokia in China and India.
    
    EUR 244 million
    
    
    10 days
    
    
    
    2.50%
    
    
    EUR 244 millionShort-term loans from Nokia to Nokia Siemens 
Networks India
    
    INR 5 002 million
    
    
    
    1 to 3 months
    
    
    
    9.0  10.9%
    
    
    EUR 79 millionShort-term loans from Nokia to Nokia Siemens 
Networks China
    
    CNY 1 600 million
    
    
    
    6 to 12 months
    
    
    
    5.9  6.7%
    
    
    EUR 177 millionLong-term loans from Nokia to Nokia Siemens 
Networks Finance BV  maturing in April 2011
    
    EUR 500 million
    
    
    2 years 6 months
    
    
    
    5.9  6.0%
    
    
    EUR 500 millionLong-term loans from Siemens to Nokia Siemens 
Networks Finance BV  maturing in April 2011
    
    EUR 500 million
    
    
    2 years 6 months
    
    
    
    5.9  6.0%
    
    
    EUR 500 million




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##### Table of Contents



Notes to the Consolidated Financial Statements
  EURm
    
    
    
    
    
    Nokia
    
    
    SiemensLeasing payments2010
    
    
    
    17
    
    
    
    512011
    
    
    
    17
    
    
    
    422012
    
    
    
    10
    
    
    
    352013
    
    
    
    7
    
    
    
    292014
    
    
    
    7
    
    
    
    25Thereafter
    
    
    
    18
    
    
    
    20Total
    
    
    
    76
    
    
    
    202
 EURm
    
    2009
    
    
    2008
    
    
    20071Share of results of associated companies
    
    
    32
    
    
    
    (13
    )
    
    
    4Dividend income
    
    
    
    
    
    
    6
    
    
    
    12Share of shareholders equity of 
associated companies
    
    
    27
    
    
    
    43
    
    
    
    56Sales to associated companies
    
    
    8
    
    
    
    56
    
    
    
    82Purchases from associated companies
    
    
    211
    
    
    
    162
    
    
    
    125Receivables from associated companies
    
    
    2
    
    
    
    29
    
    
    
    61Liabilities to associated companies
    
    
    31
    
    
    
    8
    
    
    
    69
 
 1
    
    Represents the nine-month period through December 31, 2007 as the Group commenced operations
on April 1, 2007.   EURm
    
    2009
    
    
    2008
    
    
    20071Short-term benefits
    
    
    8
    
    
    
    13
    
    
    
    6Other long-term benefits
    
    
    5
    
    
    
    4
    
    
    
    3Share-based compensation expense
    
    
    
    
    
    
    (1
    )
    
    
    3Total
    
    
    13
    
    
    
    16
    
    
    
    12
 
 1
    
    Represents the nine-month period through December 31, 2007 as the Group commenced operations
on April 1, 2007.




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##### Table of Contents



Notes to the Consolidated Financial Statements
   EURm
    
    2009
    
    
    2008
    
    
    2007Adjustments for:Depreciation and amortization
    
    
    860
    
    
    
    889
    
    
    
    677Scrapping/write-off of property,plant and equipment/intangible assets
    
    
    17
    
    
    
    4
    
    
    
    Inventory purchase price allocationstep up realization
    
    
    
    
    
    
    
    
    
    
    182Profit on sale of property, plant andequipment, available-for-saleinvestments and Group companies
    
    
    (28
    )
    
    
    (11
    )
    
    
    (53
    )Income taxes
    
    
    371
    
    
    
    (162
    )
    
    
    (425
    )Share of results of associated companies
    
    
    (32
    )
    
    
    13
    
    
    
    (4
    )Minority interest
    
    
    8
    
    
    
    35
    
    
    
    30Financial income and expenses
    
    
    182
    
    
    
    148
    
    
    
    51Transfer from hedging reserve to sales

and cost of sales
    
    
    100
    
    
    
    (117
    )
    
    
    (133
    )Impairment charges
    
    
    1 620
    
    
    
    47
    
    
    
    Share-based compensation
    
    
    (12
    )
    
    
    (19
    )
    
    
    100Post-employment benefits
    
    
    36
    
    
    
    (17
    )
    
    
    Non-cash part of restructuring provision,one-off activities and impairment 
charges
    
    
    118
    
    
    
    404
    
    
    
    856Adjustments, total
    
    
    3 240
    
    
    
    1 214
    
    
    
    1 281Change in net working capital:Decrease/(increase) in current

receivables
    
    
    1 144
    
    
    
    30
    
    
    
    (2 242
    )Decrease/(increase) in inventories
    
    
    375
    
    
    
    (2
    )
    
    
    (11
    )(Decrease)/increase in interest-free

short-term borrowings
    
    
    (1 837
    )
    
    
    (606
    )
    
    
    1 553Decrease/(increase) in loans to

customers
    
    
    91
    
    
    
    113
    
    
    
    (97
    )Change in net working capital
    
    
    (227
    )
    
    
    (465
    )
    
    
    (797
    )
 (a) Market risk
 Foreign exchange risk
  
    
    Statement of financial position risks from foreign exchange positions in currencies
other than the functional currency of the respective Group entity are identified and hedged on
an ongoing basis.
 
    
    Cash flow risks arising from forecasted sales and purchases of the Group are
concentrated mainly in the operations of Finland. Those risks in currencies other than euro,
are identified on a monthly basis and hedged under hedge accounting for a period up to 15
months. Typically, cash flows from these forecasted sales and purchases are realized within a
period of 12-15 months.
   36          Nokia
Siemens Networks in 2009




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##### Table of Contents



Notes to the Consolidated Financial Statements
   2009EURm
    
    USD
    
    
    JPY
    
    
    INR
    
    
    GBP
    
    
    OtherFX derivatives used as cash flow hedge (net amount)1, 4
    
    
    869
    
    
    
    79
    
    
    
    78
    
    
    
    59
    
    
    
    191FX exposure from statement of financial position items (net amount)3
    
    
    1 222
    
    
    
    15
    
    
    
    254
    
    
    
    127
    
    
    
    808FX derivatives not designated in a hedge relationship andcarried at fair value through profit and loss (absolute net amount)2, 4
    
    
    1 546
    
    
    
    21
    
    
    
    206
    
    
    
    108
    
    
    
    609
 2008EURm
    
    USD
    
    
    BRL
    
    
    INR
    
    
    GBP
    
    
    OtherFX derivatives used as cash flow hedge (net amount)1, 4
    
    
    1 434
    
    
    
    
    
    
    
    129
    
    
    
    96
    
    
    
    324FX exposure from statement of financial position items (net amount)3
    
    
    3 175
    
    
    
    295
    
    
    
    205
    
    
    
    178
    
    
    
    1 127FX derivatives not designated in a hedge relationship andcarried at fair value through profit and loss (absolute net amount)2, 4
    
    
    3 314
    
    
    
    243
    
    
    
    212
    
    
    
    179
    
    
    
    875
 
 1
    
    The foreign exchange derivatives are used to hedge the foreign exchange risk from forecasted
highly probable cash flows related to sales, purchases and business acquisition activities. In
some of the currencies, especially US dollars (USD), the group has substantial foreign
exchange risks in both estimated cash inflows and outflows, which have been netted in the
table. Refer to Note 21, Fair value and other reserves for more details on hedge accounting.
The underlying exposures for which these hedges are entered into are not presented in the
table, as they are highly probable cash flows and commitments that do not meet the definition
of financial instruments.2
    
    The statement of financial position items which are denominated in the foreign currencies are
hedged by a portion of foreign exchange derivatives not designated in a hedge relationship and
carried at fair value through profit and loss, resulting in offsetting foreign exchange gains
or losses in the financial income and expenses.3
    
    The Groups foreign exchange exposure is predominantly long in US dollar against the euro.4
    
    The Group has hedged the balance exposure with a combination of foreign exchange forwards and
foreign exchange options in 2009.   Interest rate risk
 
   2009
    
    
    2008EURm
    
    Fixed rate
    
    
    Floating rate
    
    
    Fixed rate
    
    
    Floating rateAssets
    
    
    498
    
    
    
    503
    
    
    
    948
    
    
    
    1 031Liabilities1, 2
    
    
    (543
    )
    
    
    (1 620
    )
    
    
    (1 361
    )
    
    
    (1 149
    )Assets and liabilities before derivatives
    
    
    (45
    )
    
    
    (1 117
    )
    
    
    (413
    )
    
    
    (118
    )Interest rate derivatives
    
    
    (332
    )
    
    
    330
    
    
    
    
    
    
    
    Net debt exposure
    
    
    (377
    )
    
    
    (787
    )
    
    
    (413
    )
    
    
    (118
    )
 
 1
    
    Decrease in fixed rate liabilities is mainly due to a decrease in borrowing from several counterparties on an uncommitted basis.2
    
    Increase in floating rate liabilities is mainly due to increases in shareholder loans. Notes to the Consolidated Financial Statements          37




---



##### Table of Contents



Notes to the Consolidated Financial Statements
   Value-at-Risk
    Foreign exchange Value-at-Risk
  Foreign exchange position Value-at-Risk
 EURm
    
    2009
    
    
    2008At December 31
    
    
    41
    
    
    
    229Average for the year
    
    
    99
    
    
    
    124Range for the year
    
    
    26-242
    
    
    
    35-263
 Interest rate Value-at-Risk
 Interest rate Value-at-Risk
 EURm
    
    2009
    
    
    2008At December 31
    
    
    5
    
    
    
    1Average for the year
    
    
    4
    
    
    
    1Range for the year
    
    
    3-7
    
    
    
    1-3
 (b) Credit risk
   EURm
    
    2009
    
    
    2008Financial guarantees given on behalf ofcustomers or suppliers
    
    
    
    
    
    
    Loan commitments given but not used
    
    
    92
    
    
    
    19292
    
    
    
    192
 Business related credit risk
   38          Nokia
Siemens Networks in 2009




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##### Table of Contents



Notes to the Consolidated Financial Statements
   EURm
    
    2009
    
    
    2008Past due 0-30 days
    
    
    91
    
    
    
    89Past due 31-180 days
    
    
    97
    
    
    
    71More than 180 days
    
    
    94
    
    
    
    32282
    
    
    
    192
    Financial credit risk
 (c) Liquidity risk
   Notes to the Consolidated Financial Statements          39




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##### Table of Contents



Notes to the Consolidated Financial Statements
   At December 31, 2009
    
    Due
    
    
    Due between
    
    
    Due between
    
    
    Due between
    
    
    Duewithin 3
    
    
    3 and 12
    
    
    1 and 3
    
    
    3 and 5
    
    
    beyond 5EURm
    
    months
    
    
    months
    
    
    years
    
    
    years
    
    
    yearsNon-current financial assetsLong-term loans receivable
    
    
    
    
    
    
    
    
    
    
    36
    
    
    
    6
    
    
    
    4Other non-current assets
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    1Current financial assetsCurrent portion of long-term loans receivable
    
    
    4
    
    
    
    11
    
    
    
    
    
    
    
    
    
    
    
    Short-term loans receivable3
    
    
    162
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Available-for-sale investments
    
    
    313
    
    
    
    34
    
    
    
    
    
    
    
    
    
    
    
    Cash
    
    
    449
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Cash flows related to derivative financial assets net settled:Derivative contracts  receipts
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Cash flows related to derivative financial assets gross settled:Derivative contracts  receipts
    
    
    4 484
    
    
    
    964
    
    
    
    
    
    
    
    
    
    
    
    Derivative contracts  payments
    
    
    (4 416
    )
    
    
    (935
    )
    
    
    
    
    
    
    
    
    
    
    Accounts receivable1, 2
    
    
    3 341
    
    
    
    918
    
    
    
    73
    
    
    
    
    
    
    
    Non-current financial liabilitiesLong-term liabilities
    
    
    26
    
    
    
    50
    
    
    
    300
    
    
    
    1 634
    
    
    
    109Current financial liabilitiesCurrent portion of long-term loans
    
    
    2
    
    
    
    11
    
    
    
    
    
    
    
    
    
    
    
    Short-term liabilities
    
    
    197
    
    
    
    134
    
    
    
    
    
    
    
    
    
    
    
    Cash flows related to derivative financial liabilities net settled:Derivative contracts  payments
    
    
    (1
    )
    
    
    (4
    )
    
    
    (9
    )
    
    
    (3
    )
    
    
    Cash
flows related to derivative financial liabilities gross settled:Derivative contracts  receipts
    
    
    3 513
    
    
    
    680
    
    
    
    
    
    
    
    
    
    
    
    Derivative contracts  payments
    
    
    (3 555
    )
    
    
    (693
    )
    
    
    
    
    
    
    
    
    
    
    Accounts payable2
    
    
    2 016
    
    
    
    83
    
    
    
    4
    
    
    
    
    
    
    
    Contingent financial assets and liabilitiesLoan commitments given4
    
    
    52
    
    
    
    40
    
    
    
    
    
    
    
    
    
    
    
    Financial guarantee given uncalled
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Loan commitments obtained
    
    
    
    
    
    
    
    
    
    
    2 051
    
    
    
    
    
    
    
    
 40          Nokia
Siemens Networks in 2009




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##### Table of Contents



Notes to the Consolidated Financial Statements
  At December 31, 2008
    
    Due
    
    
    Due between
    
    
    Due between
    
    
    Due between
    
    
    Duewithin 3
    
    
    3 and 12
    
    
    1 and 3
    
    
    3 and 5
    
    
    beyond 5EURm
    
    months
    
    
    months
    
    
    years
    
    
    years
    
    
    yearsNon-current financial assetsLong-term loans receivable
    
    
    
    
    
    
    
    
    
    
    19
    
    
    
    6
    
    
    
    8Other non-current assets
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    0
    
    
    
    0Current financial assetsCurrent portion of long-term loans receivable
    
    
    5
    
    
    
    101
    
    
    
    
    
    
    
    
    
    
    
    Short-term loans receivable3
    
    
    252
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Available-for-sale investment
    
    
    782
    
    
    
    65
    
    
    
    
    
    
    
    
    
    
    
    Cash
    
    
    758
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Cash flows related to derivative financial assets net settled:Derivative contracts  receipts
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Cash flows related to derivative financial assets gross settled:Derivative contracts  receipts
    
    
    3 232
    
    
    
    1 280
    
    
    
    
    
    
    
    
    
    
    
    Derivative contracts  payments
    
    
    (3 253
    )
    
    
    (1 176
    )
    
    
    
    
    
    
    
    
    
    
    Accounts receivable1,2
    
    
    3 526
    
    
    
    1 012
    
    
    
    70
    
    
    
    
    
    
    
    Non-current financial liabilitiesLong-term liabilities
    
    
    
    
    
    
    
    
    
    
    1 307
    
    
    
    56
    
    
    
    90Current financial liabilitiesCurrrent portion of long-term loans
    
    
    
    
    
    
    56
    
    
    
    
    
    
    
    
    
    
    
    Short-term liabilities
    
    
    762
    
    
    
    531
    
    
    
    
    
    
    
    
    
    
    
    Cash flows related to derivative financial liabilities net settled:Derivative contracts  payments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Cash flows related to derivative financial liabilities gross settled:Derivative contracts  receipts
    
    
    (4 934
    )
    
    
    (2 984
    )
    
    
    
    
    
    
    
    
    
    
    Derivative contracts  payments
    
    
    4 936
    
    
    
    2 988
    
    
    
    
    
    
    
    
    
    
    
    Accounts payable2
    
    
    2 554
    
    
    
    77
    
    
    
    5
    
    
    
    
    
    
    
    Contingent financial assets and liabilitiesLoan commitments given4
    
    
    11
    
    
    
    151
    
    
    
    
    
    
    
    30
    
    
    
    Financial guarantee given uncalled
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Loan commitments obtained
    
    
    
    
    
    
    
    
    
    
    100
    
    
    
    
    
    
    
    
 
 1
    
    Accounts receivable maturity analysis does not include receivables accounted for based on the percentage of completion method of EUR 1 455 million (EUR 2 205 million in 2008).2
    
    The fair values of accounts receivable and payable are assumed to approximate their carrying values due to their short term nature.3
    
    Short-term loans receivable are included in other financial assets.4
    
    Loan commitments given but undrawn have been included in the earliest period in which they could be drawn.   Hazard risk
 
   Notes to the Consolidated Financial Statements          41




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Notes to the Consolidated Financial Statements
   
 
   42          Nokia
Siemens Networks in 2009




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##### Table of Contents



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