Nokia comments on S&P's credit rating announcement
Espoo, Finland - Timo Ihamuotila, Nokia's Executive Vice President and CFO, comments on today's rating decision from Standard & Poor's:
"With a strong positive gross and net cash position, Nokia was able to take advantage of an opportunity to fully own Nokia Siemens Networks and, we believe, create meaningful value for Nokia shareholders. We will continue to prudently manage our cash resources post-transaction."
Nokia's financial position remains strong
Nokia announced that it had entered into a definitive agreement to purchase Siemens' 50% stake in Nokia Siemens Networks earlier this week, with the transaction expected to close during the third quarter 2013. In the announcement, Nokia estimated its cash resources for the end of the second quarter 2013 to be between EUR 9.2 billion - EUR 9.7 billion in gross cash and between EUR 3.7 billion - EUR 4.2 billion in net cash. Additionally, for comparison purposes, Nokia estimated that if the transaction to purchase Siemens' 50% stake in Nokia Siemens Networks had been closed during the second quarter 2013, Nokia would have ended the second quarter of 2013 with gross cash of between EUR 9.2 billion - EUR 9.7 billion and net cash of between EUR 2.0 billion - EUR 2.5 billion, reflecting the deduction of the purchase price of EUR 1.7 billion from Nokia net cash.
Nokia notes that it also has access to additional liquidity via a revolving credit facility of EUR 1.5 billion, which is entirely undrawn and available to the company through March 2016. Nokia Siemens Networks also has a EUR 750 million revolving credit facility that is entirely undrawn and available through June 2015.
Further information on Nokia's debt instruments can be found in the company's Q1 2013 Interim Report issued on April 18, 2013.
It should be noted that certain statements herein that are not historical facts are forward-looking statements, including, without limitation, those regarding: A) the planned acquisition by Nokia of Siemens' entire stake in Nokia Siemens Networks (referred to below as "Acquisition"); B) the closing of the Acquisition; C) expected plans and benefits related to or caused by such Acquisition; D) expectations of financial performance including cash position; E) the timing and expected benefits of strategies, including expected operational and financial benefits and targets; F) expectations regarding market developments and structural changes; and G) statements preceded by "believe," "expect," "anticipate," "foresee," "target," "estimate," "designed," "aim", "plans," "intends," "will" or similar expressions. These statements are based on management's best assumptions and beliefs in light of the information currently available to it. Because they involve risks and uncertainties, actual results may differ materially from the results that we currently expect. Factors that could cause these differences include, but are not limited to risk in relation to the Acquisition such as the ability to obtain necessary approvals for the Acquisition as well as internal and external operating factors relating to, for example, the intensity of competition in the various markets where we do business, the development of the mobile and communications industry, general economic conditions globally and regionally and the ability to invest in and timely introduce new competitive products, services, upgrades and technologies. These factors include in particular, but are not limited to factors that Nokia has identified in more detail on pages 12-47 of its annual report on Form 20-F for the year ended December 31, 2012 under Item 3D. "Risk Factors.", filed with the US Securities and Exchange Commission and available for instance through www.nokia.com/financials, and Nokia Siemens Networks has described on pages 50-51 of its 2012 Annual Report available for instance through www.nokiasiemensnetworks.com/about-us/company/financial. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Nokia does not undertake any obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.
Nokia is a global leader in mobile communications whose products have become an integral part of the lives of people around the world. Every day, more than 1.3 billion people use their Nokia to capture and share experiences, access information, find their way or simply to speak to one another. Nokia's technological and design innovations have made its brand one of the most recognized in the world. For more information, visit http://www.nokia.com/about-nokia.
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