Nokia said the platform support payments it receives from Microsoft will “slightly exceed” the software royalty payments which go in the other direction in 2013 – although the balance is shifting so that Nokia will be the payer over the remaining life of the agreement.
The recovering device maker said that its royalty payments will exceed platform support payments to the tune of EUR500 million during the remaining period of the deal.
Under the terms of the agreement which saw Nokia adopting Windows Phone as its smartphones platform, Microsoft agreed to pay the device maker EUR250 million per quarter in the form of platform support payments.
Nokia said that as of the end of 2012, “the amount of platform support payments received by Nokia has exceeded the amount of minimum software royalty commitment payments made to Microsoft, thus the net cash flows have been in our favour”.
The report also noted that Stephen Elop, CEO of the company, saw his remuneration fall to EUR4.33 million from EUR7.94 million, due to the lack of a bonus for 2012 and a reduction in “other compensation”.
The device maker also said it is targeting net sales in its Devices & Services unit to grow “faster than the market”, with non-IFRS operating margin in this unit to be 10 per cent or more. The long-term non-IFRS operating margin target for the Nokia Siemens Networks infrastructure joint venture is in the 5 per cent to 10 per cent range.